IPG's Geier Has Bizarre Economic Stimulus Idea; Blows Thousands on Ad in the Times
Today's news of layoffs at Dentsu and InterPublic's McCann is depressing, but not helping matters is former IPG titan Phil Geier, who took out a full-page ad in the New York Times with his own money to tout a ludicrous economic stimulus idea. His notion, per Ad Age, is that President Obama should give every American:
IPG employees will remember that Geier's track record on matters economic isn't great. Hands up if you remember when IPG was forced to give back $250 million that it "accidentally" diverted from its clients? Phil, the government already has "checks" that can be exchanged for goods. It's called "money." The difference between "money" and "checks" is that money is free to process, whereas checks create a wealth-destroying processing/clearance fee. So your "checks" idea is wasting money before it's even printed.a book of checks [that] may be used for discounts against certain purchases including cars, computers, household appliances, restaurant meals and grocery store items. Alternately, they could be combined for a large purchase or a lease or down-payment commitment.
Second, as the New Yorker's James Surowiecki explained this week, there's a reason all-at-once giveaways don't stimulate the economy (think of Bush's 2001 rebates). Give people a lump sum and they save it, expecting the worst. Give people a repeated chain of smaller sums and they treat it as "permanent" income, spending it on bills and stuff, thus boosting the economy.
Third, Phil, it's nice that you're rich enough to afford full-page ads in the Times with your own money. The price of those things runs $65,000 to $181,000. (And lord know the Times needs the money.) But your former staffers are joining the unemployment lines. So perhaps you should enjoy your wealth more discreetly. Just a thought.