SUN Program vs. Current Stimulus Flowcharts

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Current Government Programs:

The Federal Governments current economic stability and stimulus funding programs have several major problems

1. Very little money is included for consumer spending.
2. Whatever money is provide for consumer spending is not delivered quickly enough to have an impact.
3. Infrastructure projects take too long to develop, so the job creation “velocity” is extremely slow.
4. The $1+ trillion provided to banks are still not reaching businesses and consumers, even though the banks collectively have an excess of $800 billion over their current reserve requirements.
5. Using a 6-month target to create jobs, here is how the current programs play out
   1. Weak consumer spending means continued job losses, as the new spending from the stimulus will not outpace the losses in spending from prior job losses and consumer fear.
   2. Declining tax revenues will continue to adversely affect local, state and the Federal Government, putting additional financial strain on an already drained US Treasury. The latest report indicated that Federal Tax revenues were down 34%.

Stimulate-Us-Now (SUN) Program: The SUN Program provides a jump start to the economy.

1. The money is delivered directly to the American consumer where it will do the most good.
2. The money must be spent within 6-months to inject immediate dollars into our businesses the right way, through the front door as purchases, and not by funding losses through the back door.
3. The $700 billion in funding is more than two times greater than the decline in consumer spending that occurred over the second half of 2008 and the first quarter of 2009. This comparison assumes that consumer spending would have continued to grow at 1.38% during this time period.

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