Chasing the Consumption Tail

The Washington Post (‘Cash for Clunkers,’ household edition) reports on the inevitable next stimulus program.  After home buyer credits and vehicle trade-in incentives, the next program is focusing on household appliances.

Rather than gaining assets and depreciating them over the long term through maintenance and repairs (thus reducing expenses), Schumpeter’s ”creative destruction” seems to be the sign of the times.  The big question is just how fast the consumption cycle needs to spin to support the consumption-dependent economy.  One also wonders what’s next in this tail-chasing cycle of stimulus and re-stimulus: incentives to clear out your closets, trade in your shoes, and toss our your furniture to buy new?