S&R: Rep. Boehner, Chairman Bernanke called yesterday for Congress to pass a stimulus plan to help stabilize the U.S. economy. Studies have shown repeatedly that stimulus plans directed at the poor are the most likely to both help those who need the money the most and to have the greatest economic benefits for the country – the poor are most likely to spend any money given them instead of save it or use it to pay down existing debt. The same studies have shown that your preferred stimuli – corporate tax cuts, capital gains tax cuts, an “all of the above” energy development plan, etc. – fail to provide significant stimulus to the economy in less than one to two years and are not cost effective for that reason. Given these facts, why should Americans who are suffering from a bad economy right now support your plan when they won’t see any improvement for at least another year?
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