.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;}
Dear Mr. Berko:

W.P., Oklahoma City

Dear W.P.:

Sadly, no matter how you look at it, the latest economic stimulus package hosted by Congress is pure, pandering politics, a national giveaway program to put pieces of eight in the pockets of voters in time for the November elections. The typical Washington response to an economic problem (social, too) is to bury it under an avalanche of “free” money. And it works. The pain goes away for a little while only to return shortly after the election. This rebate (which is borrowed money and increases our national debt by $150 billion) is sort of like giving an aspirin to Typhoid Mary so she can return to the kitchen and prepare more meals.

If you take your family to Wal-Mart and buy toys, clothes, camping equipment, office supplies, athletic shoes and sporting goods, that money is basically sent to China. If you decide to use your rebate as a down payment on a Honda or a Toyota or purchase various electronic devices, you are depositing the check in Japan. If you purchase a laptop computer, clothing, jewelry, semiprecious stones and leather goods, your rebate check is cashed at a bank in India. If you buy various fruits, vegetables, flowers, silver, coffee, cotton goods and alcoholic drinks, your check is marked “pay to the order of Guatemala, Honduras or Mexico.” If you purchase TV sets, cell phones, stereo systems, video players, recorders, etc., you are essentially giving that money to Korea and Vietnam. And when you purchase fuel to drive your car or oil to warm your home, that rebate swells the already bulging bank accounts of the Arab sheiks in the Mideast.

Oh, the rebate will be an economic stimulus. Congress and the press (both of which are economically challenged) will wax eloquent, praising the Fed for this brilliant strategy.

However, the Fed did not approve the $150 billion giveaway; rather it was foisted upon taxpayers by the White House. In fact Fed Chairman Ben Bernanke vigorously objected to this stimulus but was overruled and bludgeoned by the White House. Bernanke believed the stimulus would be a short-lived political fix. He also knew that when the glow dims, the White House will blame the Fed.

One obvious solution to our economic problem is actually quite simple: Return the price of oil to $30 a barrel. The high price of oil is having a very nasty worldwide impact on the cost of almost everything we consume.

Petrochemicals have abundant uses in our lives. They are used in foods, resins, fuels, pipes, clothing, carpets, bottles, inks, dyes, pesticides, polyesters, nylons, acrylics, vitamins, adhesives, waxes – I could continue for page after page. Oil has tripled in price in the past three years, driving up the prices on almost everything we purchase at the shopping mall and grocery store between 10 percent and 30 percent.

Bringing the price of oil back to $35 a barrel, reducing the price of gas from $3.60 to $1.50 per gallon, and reducing the cost of cereals, eggs, milk, meat between 10 percent and 30 percent, etc., would have a much better effect than giving each family $1,200 to spend. It could be done if Big Oil would allow it to happen.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service