Spending Money for the Public Good: Yet another sign of excess?

On January 18th, the local government issued some vouchers to all permanent residents and locals in Taiwan. These vouchers amounted to NT$3600 (about US$107) for every man, woman and child on the island. For some families, it was quite a big windfall, but for most it isn’t. The money is in the form of a coupon or voucher that can be used until September 30th this year to purchase goods and service at most places on the island. They were issued in the form of 500’s and 200’s. If you failed to collect yours, you still have plenty of time until the end of April.

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Yes, those are mine sitting on the desk the night I got them. Well, like any good member of the public, I did my duty. I finally used mine to purchase a new mobile phone. Indeed, I went rather over the limit with my purchase. But that’s what happens when you get mad at your old telephone company. I switched to a new company and bought a much better plan. Much Better. It’s very bad form to piss off your customers. More on my purchase later…

Should you swipe at all?

But I was wondering, sitting there with my credit card at the ready. Swipe! Swipe! Swipe! But will that be enough to save the world from the hangover of excess over the last few years? Really, will it? When the government tells its people to spend, rather than save, one has to wonder whose interests it is serving.

Could it be that what is good for individuals and families (cost cutting, sensible saving, reducing debt…) may be bad for the economy (lost jobs, decreased sales, less borrowing…) but what is good for the economy may be ruinous for individuals ( when things get bad, spend, borrow, and cut your savings…). It’s difficult to believe that ordinary families will be persuaded to part with hard-earned cash in the face of such uncertainty.

But why the vouchers?

It’s rare that the government actually provides such a concrete measure to increase spending. Perhaps the usual formula of cutting interest rates has failed to stimulate spending in any great measure. I mean, who in their right mind will spend more money when they are likely to be fired. Rather they will curtail unnecessary expenses, save more in the bank, and make do. None of which will help stimulate demand. Even bribing your public won’t help, will it?

Making something from nothing!

Evil ideas? So it got me wondering. Is it possible to take the $3600 and make some money with it? You’re not allowed to exchange the money for cash, can’t put it in the bank, or even give change for the money. So I brainstormed some ideas.

1. Buy some frames, pay for image processing, and sell some of your photographs as individually signed pictures to people you know, at a market, or to a store. You can limit the series or produce extra pictures to special order…

2. Buy a large item at a warehouse store, repackage it as a smaller items, find a way to add value (by packaging, including other items, through location, …). Buy a large box of instant or fresh coffee bags, a box of sugar packets and creamer, a box of paper cups. Make up sets of each, then sell them to office workers.

There’s no limit to your creativity. You don’t need a big budget, but you do need a sense of where your market is. Once you know your market, creating a product shouldn’t be difficult if you know how to sell to that market. What other ways can you use these coupons? Did you get them? What did you do with them?

3 thoughts on “Spending Money for the Public Good: Yet another sign of excess?

  1. Breast milk storage

    I want some free money. The U.S. government sent out stimulus checks, which I didn't receive. They said it barely had an impact on the economy. I don't know why you would send out checks to people who are going broke and expect them to spend it all immediately, plus where'd the money come from?

    I think it's a good idea to use the gov't money to start your own business or invest in something that will get you more money in the long run. Regards!

  2. InvestorBlogger Post author

    We're not sure of the exact effect yet. But typically at Chinese New Year people spend a lot of money, so it was convenient. Will it help things? Well, only time will tell. I guess some of it will be spent on discretionary items, but a lot will go to regular stuff because people just don't have as much cash. Either way, it's extra spending money. Unlike the stimulus checks, it can't be put in the bank. It HAS to be spent. Of course, it could just replace cash for some people. Will it help?

  3. InvestorBlogger Post author

    It looks like the US government is planning another one for you! I am not sure what form it will take yet. Will it be a check or rebate?

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