The Back Pages: Editorials react to stimulus package

President Bush reached a deal with House leaders last week on a $150 billion economic stimulus package. The plan relies on tax rebates and temporary tax breaks for businesses to deliver a boost to the nation’s slumping economy. In the editorial pages of Minnesota’s newspapers, the reactions were tepid at best. There is consensus that in order for tax rebates to be effective the recipients must spend the money. While the Minnesota Daily is pessimistic about consumer willingness to spend, the St. Cloud Times argues that willingness to spend isn’t our problem, financial responsibility is.

Mankato Free Press: Tax rebates come with a fiscal cost
Its success to bolster the economy will depend on consumers willing to go out and buy a big screen television while knowing their neighbor may be still looking for work. It can be an iffy proposition in an economy that has created at least some uncertainty. But as Sen. Norm Coleman recently told The Free Press, with the low savings rate in the country, he thinks most people will likely spend the money. It’s a needed hope, but one we’re not sure is something to be proud of.

St. Cloud Times: Rebates should help ease debt not be spent
Their plan to put $100 billion into the hands of about 117 million families by June with the overt goal of getting recipients to spend it seems to be an untimely enabler given everything from the nation’s subprime-induced housing crunch to credit-card debts that some card companies say average $6,000 per household.

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Minnesota Daily: Economic stimulus misses the point
The whole premise of the tax rebate method relies on consumers to spend their rebate money, but there is no guarantee that individuals will rush to their nearest retailer. As economic conditions worsen, some will exhibit the type of fiscal responsibility that is lacking in Washington, and they will save their money. Even if every dime is spent, there is no guarantee that it will reverse our economic trend.

If our politicians truly believe that increasing government spending is the best option, then we would be better served with direct investments in public works projects. Needed investments in infrastructure would create jobs and infuse money more directly into the economy.

Star Tribune: Don’t expect miracles from stimulus deal
Prudent economic policy would have built a budgetary cushion during the past six “fat” years. Instead, we built up debt, and any economic stimulus package will heap more of it onto the backs of future taxpayers.

The Back Pages is a weekly roundup of editorial opinions on issues that face Minnesota. Look for it every Monday.