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When All You Think You Have to Fix the Economy is A Prime Rate Cut and Tax Rebate.... You Better Think Again

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Psychologist Abraham Maslow had a saying, "When all you have is a hammer, everything is a nail."

For American economists and politicians, all they have are two things-- prime rate cuts and tax cuts-- so it seems. And oh yes, a horrendous, record setting economic disaster that many are already saying has set off recession, not to mention losses of of millions of homes by default and losses of tens of billions of dollars.

So how will a tax break plan help? How will rate cuts help?

The way the Dems, GOP and Bush are talking, using a general tax break, makes no sense.

A lot of people will buy imported crap or pay off credit cards.

One polls shows that 58% will use it to pay off debt, 25% will save it and 17% will spend it.

This is stupid and it won't work.

Then we have our one button Ph.D. Bernanke. Poor guy. He has a job where all he can do is push the button to raise or lower the prime rate. Fact is, with all the other economic factors influencing the economy, this has a smaller and smaller real effect. Sure, it generates a one day blip up in the DOW. But it also decreases foreign incentive to invest and probably contributes to the decrease in the value of the dollar. Import prices (read that computers, Walmart stuff, clothing, shoes, toys) go up.

There's no doubt that Bernanke will lower the rates soon, and probably a few more times. It's like crack cocaine to the investment world-- a quick fix, big high, but short lasting. It is an act of desperation by a man attributed with a lot of power who really doesn't have that much power. I was going to say it's not his fault, but as the "czar" of the economy, it is his job to come up with tools for affecting and influencing the economy-- to provide options and solutions. Sticking with the same failed tool-- the one Greenspan used to take us into this economic disaster (only to sign up with someone who profited enormously from it)-- is to ride the same failure train down into further disaster.

It's understandable and reasonable that the leaders of congress and Dubya want to do something-- to come up with an economic stimulus plan-- or something to slow or stop the descent into further economic trouble, or should I say disaster?

But it is irresponsible to just throw out tax rebates-- flagrantly, stupidly, brazenly pandering to the easy fix. It is shameful. Of course, Bush, the worst president in history, is too dumb to come up with anything intelligent, and too bad a leader to have any advisors who will give him reasonable counsel-- or too bad a leader to listen to any who provide reasonable counsel. He just wants to give out money to consumers, "so they will spend it."

That leaves the congress to prevent Bush from throwing away hundreds of billions more dollars. Fat chance that they will do anyting. It will take some guts to say "no" to Bush. So far, the Dem congress has not shown any ability (slight inclination yes) to actually refuse to give Bush what he asks.

CNN reports that in 2001, when $400-$600 was given in tax rebates, two thirds of the money "entered the economy" within a few months. What kind of languaging game is that?
Entered the economy? SOunds like the description of a stallion impregnating a mare-- entering her. Well, money entering the economy is meaningless. It must help people and businesses financially, and help the economy. There is sex, sex for procreation and love-making. Money entering the economy is like mindless, loveless, sloppy, mindless sex, and nothing more. And the question is, who is being screwed, or screwed over?

There are a few million people who will lose their homes and probably their life savings in the next year. This bandaid will not help them.

There are banks and lending institutions that have lost tens of billions of dollars. This will not help them.

There are construction workers, electricians, plumbers, drywall hangers, carpenters, painters-- who will all lose work and jobs as the housing market worsens. This will not help them.

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Rob Kall Social Media Pages: Facebook Page       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Rob Kall is an award winning journalist, inventor, software architect, connector and visionary. His work and his writing have been featured in the New York Times, the Wall Street Journal, CNN, ABC, the HuffingtonPost, Success, Discover and other media.

Check out his platform at

He is the author of The Bottom-up Revolution; Mastering the Emerging World of Connectivity

He's given talks and workshops to Fortune 500 execs and national medical and psychological organizations, and pioneered first-of-their-kind conferences in Positive Psychology, Brain Science and Story. He hosts some of the world's smartest, most interesting and powerful people on his Bottom Up Radio Show, and founded and publishes one of the top Google- ranked progressive news and opinion sites,

more detailed bio:

Rob Kall has spent his adult life as an awakener and empowerer-- first in the field of biofeedback, inventing products, developing software and a music recording label, MuPsych, within the company he founded in 1978-- Futurehealth, and founding, organizing and running 3 conferences: Winter Brain, on Neurofeedback and consciousness, Optimal Functioning and Positive Psychology (a pioneer in the field of Positive Psychology, first presenting workshops on it in 1985) and Storycon Summit Meeting on the Art Science and Application of Story-- each the first of their kind. Then, when he found the process of raising people's consciousness and empowering them to take more control of their lives one person at a time was too slow, he founded which has been the top search result on Google for the terms liberal news and progressive opinion for several years. Rob began his Bottom-up Radio show, broadcast on WNJC 1360 AM to Metro Philly, also available on iTunes, covering the transition of our culture, business and world from predominantly Top-down (hierarchical, centralized, authoritarian, patriarchal, big) to bottom-up (egalitarian, local, interdependent, grassroots, archetypal feminine and small.) Recent long-term projects include a book, Bottom-up-- The Connection Revolution, (more...)

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