January 17, 2008

Brilliant Economic Stimulus Plan

From Paul Krugman's blog entry on the Republican plan to force permanentizing Bush's tax cuts, 14th comment down:

Forget tax cuts or credits. Once the recession gets going, most rational adults would squirrel away any government loot for fear of coming calamities. To be effective, any economic stimulus measure should not merely increase the money supply, but the velocity of money moving through the economy. That is, it must be spent. And hopefully, spent again.

Somewhat tongue in cheek, I offer this idea. Pay high school students $100 for every A and $25 for every B they earn on a semiannual (semester) basis. This would accomplish two things simultaneously. First, there is no group more likely to modify their spending habits were they to come into money than teenagers. And they would tend to spend it in industries with high flow-through, like fast-food and entertainment (movies). Second, it might accomplish something other educational reforms simply haven’t - encourage scholarship among America’s youth. Do I have your vote?

— Posted by rich domingue

He has my vote.

Posted by natasha at January 17, 2008 04:31 PM | Economy | Technorati links |
Comments

smart

Posted by: Gary Denton at January 18, 2008 08:52 AM

Got my vote, and I'm becoming a high school teacher soon too. I love the idea, on so many levels I don't have time to elaborate.

Posted by: Bpaul at January 18, 2008 11:50 AM

I suggested something similar -- federal bonuses to firefighters, cops and teachers, all of whom are so underpaid that the money would zip right out there into clothes, shoes, food, and maybe some entertainment.

Posted by: Scorpio at January 18, 2008 06:00 PM