If the government wants to insure people spend any future stimulus money “wisely”, don’t send cash, send discount coupons - for specific types of items, with expiration dates. Either the money will be spent as intended to stimulate the economy, or not - and the government would at least still have its money.
For example: spending billions to help American automobile makers PUSH out cars more efficiently won’t help much if local dealers are badly overstocked. Significant new-car discount coupons might help PULL some of those cars off the lots.
The last cash stimulus (100% discounts on anything) did not work all that well. Somewhat smaller, more specific, timed discount coupons might work better.
Lee Schruben is Professor of Industrial Engineering and Operations Research.