Minnesota Vets Will Stimulate Our Economy

"Opinion"

08/20/2010

Paul Munnis


Historically when troops return home after a war it has a stimulus effect on the economy. They have a pocketful of cash from being mustered out, they have huge educational benefits waiting to be spent, and there is often a cache of money saved while away in a combat zone waiting to be spent.

Getting a job and the education needed for a good job becomes top priority for the returning soldier.

Here in Minnesota we have placed a great veteran’s benefits package on the table for our troops and we can expect returning vet’s to use it. The result will be an income surge in Minnesota. Those veterans mustering out will be taxed on their payroll for it was not taxable while on active duty but as they separate it becomes taxable.

Minnesota offers special benefits for its military service members and veterans including State Soldiers' Assistance Fund, Compensation and job hiring advantage for State and Federal jobs, Special License Plates, and Education Benefits for Minnesota Veterans, Educational Assistance-POW/MIA Dependents and Renewal of Professional Li censure.

More about these military benefits for Minnesotans can be found by clicking HERE.

People who are negative look at the long term care costs of Veterans and see it as a drag on our economy but they are wrong. Every dollar spent in supporting a Vet returns right into our economy where it is spent, thus stimulating our economy. Furthermore when it is spent it is taxed and it thus the money returns to government where it is spent once more. It is a cyclic process and every time that expenditure is made it boosts our economy.

The negative mind sees a dollar spent in supporting and helping people as if it were a dollar burned up in a furnace. To them, the money is gone from the Federal or State coffers. That is not the case for spending has an amplifier effect as that dollar touches up to seven or eight hands before it returns to government to be spent once again. Each of those hands pays taxes to government, or at least they should. Republicans try to short circuit the system by cutting corporate taxes and that strangles our economy for the money does not return immediately for fresh spending.

Our veterans are not a drag they are an asset and taxpayers benefit from our Vets in many positive ways.

Aside from the economic stimulus of returning veterans there is an increase in the number of young, capable, smart workers. In a jobless economy that is thought to be a negative thing yet the actual effect of their economic stimulus is to create jobs as a result of their increased spending. In an interesting manner and just by their presence, they create demand, demand causes hiring, and more people working means more income for State and Federal government. Minnesota has a large number of vets returning from deployment and they will surge our economy.

Returning Vets will buy cars, homes, clothing, and electronics. People wanting to obtain a share of this largesse will hire vets to man the sales and sell the goods. Minnesota employment will rise.

The big challenge for Americans is to assure that money spent does not flow out to China but stays inside the USA and cycles within our economy. Automobiles, trucks, motorcycles, banking, and home sales are of course largely indigenous to American soil, China does not sell any of these to returning Vets.

Electronics, clothing, and many consumables are imported from Asia and Germany and will be purchased from abroad, sold in the USA, and at least 30-40 percent of the sale will stay within the USA. The foreign profits will likely return in the form of purchases of Treasury Bonds and Notes thus it comes back that way.

Banking is a different story entirely. Much money placed into banks flows offshore and Congress needs to carefully examine the ebb and flow of such money to assure that it comes back to the USA. Republican tax cutting demands often keep the money in offshore foreign accounts instead of returning it to the USA as taxable income.

Minnesotans have good reason to welcome our troops home and not the least of these is their value added to our economy.

Troops are getting a bad rap where PTSD is concerned. Some have this affliction but the media would have us think that VET and PTSD are synonymous terms. They are not! Many Vets are fine healthy specimens of humanity and they are eager to lend their talents to employers. If employers do not hire vets then they will be the losers -- not the Vets.