by Melissa Manning

Created on: January 25, 2009

Once upon a time, not so long ago, there was an absolutely fool-proof way to boost spending. Unfortunately, the powers that be probably never gave any consideration whatsoever to this suggestion. Some people will never forgive those in authority for turning a blind eye to one of the great ideas of the age.

It was proposed by some unsung hero that each adult American be given a lump sum of $250,000. No strings attached, tax-free, just the cash. Contemplate for a moment the magnificent scope ot the solution that never was.

All those failed mortgages? People could have paid them off, or paid them down, or paid them ahead long enough to keep a roof over their heads until the kids left home. Of course, then the banks would still be in business and maybe the scare would have made them a little smarter.

All those houses that are for sale and not selling? Realtors who hadn't taken their cash with them into early retirement could have shown them to people with cash enough to buy them. The result would have been happy sellers, happy buyers, happy agents, and money going round and round.

All those cars that are not selling? Choose one! Hindsight says hopefully it would have been made in America, but at least those in Detroit would have had their cash.

All those gadgets at Circuit City? Many would have decided that the big check was a sign that they really were supposed to have a flat-screen TV.

All those Christmas presents that weren't bought. All those credit cards that have a too-high balance. All those cruises that no one booked. All those horses that were sold because families couldn't feed them. All those stocks that went down if not out. All of the jobs lost because insecurity about the future kept people from letting the money go round and round.

Instead the same amount of money was allocated to the bail-out and went to the banks, by-passing those who have since lost their homes, gone without the big screen, been laid off, cancelled vacations, lost half their retirement, and generally been knocked for a loop. Now they say that the astronomical amount of taxpayer dollars may not even be enough to turn the financial downturn around.

How to boost spending now? I'm afraid the stimulus checks that they say are coming will be too little, too late. People need to feel confident that there will be more money coming in before they spend what they have. That confidence has been badly shaken and it will not be easy to restore it.

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