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Stimulate 2011

Personally I don’t believe it is the place of the Government to be stimulating the economy. It is the place of government to make rules which allow for an efficient economy. I can see times were stimulation can return a positive ROI and in those situations it doesn’t bother me as much. What I really don’t like is an unbalanced budget with a debt to GDP ratio of 90%.
Right now President Obama wants to spend $500 Billion dollars to repair existing roads and bridges, and to pay for teachers salaries. I don’t find this to be real stimulus. There’s no way it will pay back the interest accumulated through the debt taken on to pay for it. The way to stimulate the economy will be to help community banks lend.
The Federal Government should guarantee up to $500 Billion in loans made by community banks to small businesses. This will get money into the hands of entrepreneurs and may save community banks; placing them in a better position for when the big banks disintegrate. I would be surprised is all of the loans default. Since they won’t default tax payers won’t be on the hook for all $500 Billion. While I don’t like it I can get behind it more so then the current proposed stimulus President Obama wants passed now.

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