The $700 billion bailout might free up credit markets, help banks with bad mortgages, and provide relief to people who are in foreclosure, but it will not fix our economy.
The U.S. is in a recession and corporations are not borrowing funds to expand. They are contracting operations and laying off workers, which will increase unemployment, and further depress the economy.
We should not issue another round of tax rebate checks. Americans spent only about $12 billion of the $78 billion of the tax rebates sent out in the Spring; the rest went into savings accounts or to pay down debt.
We should invest the estimated $100 billion Congress wants to put in a second economic stimulus package and $350 billion of the $700 billion bailout, a total of about $450 billion, in highway and bridge projects, flood control, mass transit, nuclear power plants, wind energy systems and increased domestic oil production. This will create many millions of U.S. jobs, reduce our dependence on foreign oil and improve the environment.
People will have money to pay their bills and purchase capital goods, including automobiles. This will spur U.S. industry, and corporations will then expand and create more jobs.