How about a $12 billion 'cash for clunkers' program?

If the senators, some of whom think the program is too generous, fail to expand the program, that would represent a loss for both the economy and the domestic auto sector.

The downside of the rebate program is that, in theory, it takes autos that consumers would have purchased later and brings them forward to today, thus hurting future sales.

However, the benefit is larger: if the plan reaches a critical mass, it can serve as another 'mini engine of growth' for the U.S. economy, and the point is that the U.S. should not quibble about engines of growth. So many jobs have been lost and so much purchasing power has been taken out of the economy during the recession that the U.S. economy needs all the demand it can get, and a program that encourages car trade-ins is one.

In fact, ideally, the program should be increased to at least $1 billion per month, or $12 billion. An even better plan would allocate $15-20 billion. Assuming citizens took advantage of the program, a $12-15 billion rebate program would move the U.S. GDP needle in a positive direction and have other spin-off effects.

Don't look for Congress to expand the program by that much, but if the legislative body did the nation's economy and manufacturing sector would benefit in a big way.

Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.