How to Stimuate our Economy - For REAL!

Bailout and stimulus packages. According to our Government (Canada for me & USA) this is going to get our economy moving once again. Do you believe them? The huge deficit's the governments are creating to stimulate the economy is a false economy. This money needs to be printed and them circulated in order to be used. The problem is it will drop the true value of the dollar on the world markets and at home.

So how do we really stimulate the economy? Let's say starting April 1st 2009 until July 2nd 2009 (the day after Canada Day) we eliminate both the PST and GST from all purchases. This will save the consumer in Ontario about 5-13% on every purchase. Unlike store sales the consumer will spend money, because it is a TAX CUT, which everyone loves. The added spending will stimulate the economy and cause jobs to be created because of the increase in spending. The increase in jobs will increase the income taxes paid and help the government with the hit they are taking. (But then they are spending the money poorly anyway). We would create a cycle upward rather than a spiral downward as we now have.

What happens July 2? The taxes return, but the economy is on the road to recovery. Spending will continue. Now I am not an economist, but this seems pretty obvious to me.

Just my thoughts. I welcome your comments.