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Free-marketeer: Better Than a Stimulus Plan

New York Post

By New York Post Editorial Board

The nation faces “a personal and business liquidity problem,” warns economist Arnold Kling, not “a typical business-cycle recession that requires fiscal or monetary stimulus.” That, Tom Giovanetti argues at The Wall Street Journal, means that “tax cuts and delayed filing deadlines” — and even “sending checks to households” — won’t “address the core problem.” Kling and Giovanetti support giving every American bank account, “personal or business,” a federally backed “line of credit, at low interest.” It would “work like government-backed overdraft protection,” helping struggling business and individuals and shoring up banks while ensuring they would “get their money back.” Kling’s idea is “ingenious,” Giovanetti concludes — and the government should “turn it into law” before “the next wave of bankruptcies and layoffs.”