It’s a good question, but I feel compelled to point out that the stimulus package is under $1 trillion, while the national debt is $10.6 trillion.

The idea is roughly this: the tax cuts ($300 million or so?) will put more money into peoples hands, which they will spend almost immediately because they are broke. The public works projects (highways, schools, weatherproofing) will put a lot of people to work building things the country could use, but just hasn’t had the opportunity to invest in. Those people won’t be unemployed, and will again be spending money locally.

I’m not saying it’s a slam dunk, but I haven’t heard any better ideas yet.

Amazing as it might seem, paying down the national debt by buying up treasury bonds would have more benefit.

Paying down the national debt puts money into the hands of investors, primarily fixed income investors, making money available to money lenders. In fact, it is inflationary, given the assumption that new money is used to prime the pump of paying down the debt. By prime the pump I mean that if new currency goes to pay down the debt, it soon comes back in taxes, and again goes to pay down national debt. We do not continue to stimulate inflation by buying treasuries, we add new currency only enough to keep the economy rolling.

Obviously this does not add to debt. But it does put money in the hands of investors immediately. It gives back solvency to the banks immediately. People can resume buying and selling again.

Essentially, the sale of so many US treasury bonds has removed bank solvency, and ultimately we have to buy some bonds back to get back to solvency.

Could it be that if they destroy the government that they will have to make a new one with more power over the people? More communist than it is now? If people understood Communism then they would see how communist this government has become.!