But it might matter which citizens get the money.

Agreed. This is why the LAST thing one would want to cut would be money to the unemployed and those on welfare. In 1962 my roommate was taking econ out of Samuelson and there was a discussion of this issue. When he brought this up I and our other roommate responded "Give the money to students!" They would be certain to spend it. It would beat Hell out of putting them further in debt with student loans, >90% of recipients would be certain spent on daily consumption and it is educating the citizenry along with improving their career prospects. The current system of student loans is both insane and mean spirited and is counterproductive to the overall attempt to reduce the debt to GDP ratio of the country.

But Steve Keen's idea to directly credit citizens' accounts with, say, $100,000 each, with the requirement that it be used first to pay down debt, if any, would even marginally help the wealthier in society and many of the younger citizens who happen to have little debt could use that money for college, should they so wish. Given the balance sheets of most individuals at present, it is highly doubtful that money 'paid into circulation' via such a method would result in wage inflation as there is a large labor pool to be absorbed before labor shortages become a real problem. Another benefit would be that by calling such action exercise of monetary policy it might fall within the discretion of the Fed and Treasury - QE for the people.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

Now, I am not opposed the government hiring people and get work done, I have argued for it many times. But I would also like to note, that people who lack basic stuff like food, housing and access to socially important services like transportation and tele-communication are very unlikely to hoard money. So if the government is out of ideas on how to put money in the hands of people who will spend it, I suggest going outside and put money in the hats and jars on the pavement. It will be spent quickly enough.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!