One of the biggest problems with our style of government is that our elected officials are in a perpetual state of campaigning. They eat, breathe and sleep "reelection", striving to maintain a lifelong hold on their office, one that is precipitously based (at least in their eyes) in 2, 4, and 6-year increments. Because of this their terms tend to be studies in salesmanship, every piece of legislation they pass an attempt to keep the voters contented and on their side for the next election. This has created a never-ending cycle in which our government operates only in the short-term, focusing on immediate wins with absolutely no attention to long-term consequences while failing to initiate plans that would truly be best for America’s future. We’ve seen this throughout our history, from the introduction of the flawed Social Security system to today’s tragic emphasis on ethanol.

Another very similar mind game employed by politicians is that of cementing their reign with a short-term plan that touches-up their tarnished image in hopes that people have a better appreciation for what has been accomplished over one’s tenure.

A combination of all of the above is currently what’s taking place with the federal government’s anticipated economic stimulus package. While the President brings about an immediate fix (read "Band-Aid") to our economic woes he looks good riding off into the sunset. Congress, on the other hand, sees the sunset coming but another sun rising with the rebates destined to give their dreams of continued employment a much-needed boost. Consider it buying of votes for the 2008 election (which will affect all members of the House of Representatives and 35 senators). Were they actually concerned about our future - not just theirs - and fixing the economy for the long haul they would utilize different methods than what they are planning to.

For starters, the rebates are anything but rebates. To call the $600 gift a rebate is a misnomer. If it were a rebate, those who don’t pay federal income taxes would be denied a piece of the pie. Yet, they aren’t. If it were a rebate, as money left the public coffers federal spending would go down to compensate for the loss of revenue. Yet, it won’t.

The latter creates a very dangerous situation. With mismatching cash flows the "rebates" end up being fake money created out of thin air. We already have too much of this fiat money in the system and that is one of the factors that brought our economy to the point of recession. The American dollar has lost value at a phenomenal rate and inflation has spiked because the government has issued too much of the green stuff. The "rebates" might temporarily drive the economy upwards, but after the initial boost things will only get worse with so much more money being put into play.

If the government truly desired to stimulate the economy and get some permanency out of the deal, the elected officials would make some difficult if not unpopular decisions and eliminate government’s excesses. Our nation’s businesses have a difficult time competing globally because our non-labor cost structure is 32% higher than that of our nine largest trading partners. All of the contributing factors to this competitive disadvantage are founded in governance: taxation, litigation, and regulation. Chipping away at those would allow us to sell around the world and, at the same time, it would make it feasible to produce goods at home and not abroad, inciting some serious economic growth.

Suggesting they do so is not a pipe dream, either. The cutting of spending and taxes is a proven tool of economic stimulation. One need only look across the Atlantic to see this in effect. Those in charge of once destitute Ireland decided to eliminate poverty not through entitlements but through empowerment. They cut corporate and personal income tax rates in the early 1990’s which in turn immediately drove their economy to incredible (and sustained) heights: Ten straight years of economic growth in the 6% to 10% range.

The impact that our "rebates" could have will by no means come close to such economic stimulation. Spending will spike temporarily and once the $600 gifts are gone personal finances and the health of our economy will be back to square one. The United States could right this wrong and follow a path similar to Ireland’s but we won’t…it just doesn’t fit into our elected officials’ campaign plans.