Financial Stimulus Package: Use American Gift Cards

The recent U.S. House of Representative’s bill offering “rebates” to Americans is intended to stimulate the economy to help avert a recession. Thanks to the wonders of modern, almost instantaneous, polling, most people plan on paying down debt, defraying the winter heating bill and similar non-stimulating actions.

If the “rebates” were indeed spent on American-made consumer goods and services, there could be a positive effect on our economy. One way to direct the money to this cause is with pre-paid gift cards. My Christmas stocking contained 3 of these cards, and all will (necessarily) be spent in American stores on consumer goods. This “U.S. Economy Gift Card” should probably include a notice that although you are encouraged to spend it, note that you or your children will eventually have to pay back this “gift”.

The major credit card companies could be offered a chance to bid, with a one week window, on issuing $150 billion in gift cards, with the lowest cost bidder winning. It is conceivable that the net cost to issue the cards could be less than simply printing and mailing checks from the I.R.S. In the capitalist spirit, maybe even advertising would be allowed on the cards, further reducing the costs of issuing them. Individual chain stores may be enticed to offer special discounts when using these cards, and even pay a fee for an accompanying flyer listing such discounts.

Now that I add up all the pluses of this idea, the high bidder may actually come up with a way to make money on the advertising, vendor fees, new customers, etc, and be able to offer the U.S. treasury a check for winning the contract to issue this financial stimulus. Surely we can come up with security measures in this endeavor that will allay fears of any problems in giving private companies access to the process. Since I already give a private company all of the most important financial information about my family via internet filing of my income taxes, I trust them to handle this financial stimulus package.

Most importantly, the majority of the “rebate” would be spent on consumer goods and would actually stimulate our economy. Even if some of the money is spent on imported goods, the American clerk, overseen by the American manager, depositing sales receipts in an American bank, which lends to American consumers, all will help our American economy. At least until we have to pay back the “rebate”.