I just read an interesting opinion piece by Glenn Beck, a TV personality who appears on Headline News, on using debit cards as the means of distributing stimulus dollars. He suggests that the Government, rather than send Americans paper checks, send pre-loaded debit cards that have a time limit for usage.
Whether or not this is a good idea is arguable, but I do like the dialog. If the government promulgates regulation intended to diminish the importance and convenience of paper checks, why then make use of the check as a means of returning millions to taxpayers?
Another interesting issue in light of the proposed stimulus program is that many who do not actually pay taxes will receive a portion of the distribution. I presume that these people would be considered the "unbanked" that so may financial entities are desperate to serve. Would it be possible for the government to make use of banking entities to distribute such cards as a means of bringing these individuals into the mainstream banking community?
Finally, if our esteemed congresspeople really care so much about consumer protections, why not send out debit cards that can be used immediately, at no cost to the consumer, rather than checks that many will cash at unsavory check cashing facilities less the fee that is charged for the "service?"
Read all of Mr. Becks "Glenn Beck: Debit cards for everyone!" article to form your own opinions about the wisdom, and opportunity, of the debit card as a stimulus tool.
