Let's Jump Start the Economy ...
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SANFORD, Fla., Dec. 11, 2008; The following letter is being issued by Jeno F. Paulucci, Entrepreneur.
An Open Letter to: President George W. Bush President-elect Barack Obama Speaker of the House Nancy Pelosi Majority Leader Harry Reid Members of Congress Let's Jump Start the Economy ...
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Secretary Paulson and Chairman Bernake are not getting much result with their trillion dollar program to alleviate the credit crunch ... so what is left?
We need to jump start the economy by getting people to think more optimistically by giving the consuming public opportunity to buy and to buy American-made goods. We need to get jobs started again in manufacturing plants, car dealers and in the housing market.
Therefore, we propose the following:
Years ago, during the Depression on the Iron Range of Northeastern Minnesota, when the cities and towns went broke, they issued scrip to their workers. The scrip was like a currency which could be used the same as dollars and then eventually the cities and towns redeemed them from those who accepted the scrip.
That's a little different from what I am talking about today. If we really want to jump start the economy, I would recommend bringing back scrip, where the U S Government would issue, let's say up to $500 billion worth of scrip, which would go to those who make less than $250,000 per year, but the scrip would only be good for purchasing American made products and services ... not to pay debt ... and the scrip would have an expiration date on it of about six months.
The person receiving the scrip could only buy American made goods and would have to spend it to buy a home, to buy a car, to buy clothes or food or other American made products.
The seller would receive the scrip for the purchase, the same as currency, bring it to the bank, the banks would then go to the Federal Reserve Bank and redeem it for cash.
What this accomplishes is that it forces, within a limited period of time, the recipient of the scrip to spend it.
Then car dealers can sell cars, homes can be purchased -- at least down payments could be made with the cash that the recipient has in addition to the scrip.
This could bring in a tax revenue -- sales, income tax, fuel tax, etc., of 20% - 25% of the amount of scrip issued for federal and state governments.
This is my way of answering Professor Wright, of Harvard, when he says the previous stimulus didn't work and said that the people paid off debt with the money. The scrip would not allow them to pay off debt, it would force people to buy American made goods and services and thus jumpstart the economy.
Let's restore consumer confidence! Kindest Regards, Jeno F. Paulucci JFP/cd
By way of introduction, at age 90, Jeno remains active with his Michelina's frozen entree company. He was selected by Ernst & Young as the Number One Entrepreneur in the world in their 20-year history of selecting the Entrepreneur of the Year for humanitarian activism, philanthropy and leadership.