National “10 Percent Off”Sale,
By STEPHEN MIHM
After rebate checks arrived in the mail in the spring as part of the economic stimulus package, U.S. taxpayers unexpectedly saved much of the money rather than spending it. But if too many households embrace thrift, consumer spending could come to an abrupt halt — something to keep in mind as Congress prepares yet another stimulus package. To frustrate this newfound frugality, two economists are proposing an intriguing solution: have the federal government underwrite an across-the-board “10 percent off” sale in stores throughout the country.
Rather than send checks in the mail, according to a plan first advanced by Laurence Kotlikoff of Boston University and Edward Leamer of U.C.L.A., the federal government would promise each state government a lump sum equal to 10 percent of the total money spent on consumer goods within the state over the previous six months. In return, each state would agree to institute a “10 percent off” sale throughout stores within its jurisdiction. This would be done by eliminating the state sales tax (if one exists) as well as imposing a negative tax (in other words, a further price reduction) to bring the total sale to 10 percent. Participating retailers would then submit their sales receipts to the state government in order to be reimbursed for whatever losses they sustained by making these sales. In turn, the state governments would be reimbursed by the federal government.
In the end, the federal government’s money would go only toward propping up consumer spending. Moreover, Kotlikoff and Leamer argue that by limiting the sale to six months, consumers will jump at the opportunity to buy now before the opportunity disappears, particularly when it comes to big-ticket purchases. “If you have an incentive to buy a car now rather than in six months,” Kotlikoff says, “you may be willing to spend.”
Neo-Neo Soul
By ROB HOERBURGER
Perhaps the most cynical, and the truest, line in David Mamet's “Speed-the-Plow” (spewed to overperked heights on Broadway these days by Jeremy Piven) repeats a core philosophy of show business: “Make the thing everyone made last year.” And so in 2008 the music business looked to the big thing of 2007, the British tabloid-soul diva Amy Winehouse — last seen cleaning up at the Grammys but nowhere else — and churned out not just one but two new British retro songstresses, Duffy and Adele, who even before their CDs were released were being derided as “Amy lite.”
But both women proved that knockoffs can be a good thing, especially when the “source” is so strong: in this case, Winehouse's girl-group and Motown mosaics, old-school hi-fi instrumentation and emotive but not overblown vocals. What was missing (addition by subtraction, to some) was Winehouse's bad-girl persona: the profanity, the celebration of self-medication and the graphic sex. Adele took the more aching side of Winehouse, added a just-lost-innocence feel to it and had a long-running hit called “Chasing Pavements.” And Duffy's megahit, “Mercy,” uses a bite of one of R&B's most famous bass lines, the opening to “Stand by Me,” as its foundation and also spins Winehouse's “No, no, no” from “Rehab” into a more upbeat “Yeah, yeah, yeah.”
Neither woman has Winehouse's depth, but they are more radio- and Starbucks-friendly. What's even more compelling is their youth (Adele is 20; Duffy is 24), and the fact that they're mining a sound not just 1 year but more than 40 years old. Duffy's look especially — street urchin with a stylist — helps her connect with the Facebook generation, while still-spending boomers, who might not know the visual difference between her and Miley Cyrus, can claim Duffy's sound as their own.
Winehouse's beehive, meanwhile, has lately been rising again with a YouTube clip of her singing that most indestructible of girl-group evergreens, “Will You Love Me Tomorrow.” The troubadoury rendition recently passed 1.6 million listens. Perhaps it — and not command performances at police stations and emergency rooms — is a harbinger of Winehouse's next chapter. If not, we can always wait for the next Duffy or Adele to come along.