Tax Rebate Smackdown III
In his ongoing tax rebate smackdown with Jason Furman in the LA Times, Economist Steven Landsburg poses this interesting question: "Why weren't last year's unemployed worth helping?"
People lose their jobs all the time. An above-average number might have lost their jobs in December, but plenty of others lost their jobs in November, or October, or a year ago. Why should people who endured this trauma last year — and others who will endure it a year from now — be taxed to help those who happen to be enduring it today?
It seems fundamentally unfair to say that we'll help you out with an expensive stimulus package if you lost your job this month, but we'll foot you with the bill for that package if you lost your job a year ago and then found your way back into the workforce. Not only is it unfair, but if the package doesn't work, it's unwise to boot.
The economy does not need to be stimulated so much as people need to find new ways to be useful. If you're good at building houses and too many houses have been built, then sooner or later you're going to have to become good at doing something else. It is a false favor to delay that process.