BUSINESS WATCH:

President Bush announced a plan Friday to boost the United States economy by giving consumers more money to spend. But Chip Hanlon, the president of the investment strategies company Delta Global Advisors, has what he calls a better idea: Tell the government to spend less.

Hanlon’s Huntington Beach-based company offers financial advice to Newport-Mesa residents and small business owners; it was among those listening intently Friday morning when the president called for a stimulus to the sagging economy. In a news conference at the White House, Bush announced plans to offer “broad-based tax relief” to Americans and to give tax incentives to businesses to encourage them to invest money, expand their operations and hire more workers.

Bush said he believed freeing up consumer dollars, rather than increasing federal spending, would most protect America against a recession.

Hanlon won’t argue that point, but the longtime Republican said the Bush administration has already been far too liberal in racking up bills, and a temporary payback to citizens won’t solve that problem.

“If just putting money in people’s hands is the solution, why just a few hundred dollars?” he said. “Why don’t they just wire $1 million into everyone’s bank account, and then we’ll all be rich?”

The best solutions, Hanlon said, were to cut government spending and to lower the regulatory burdens on businesses. He said he liked the idea of giving tax incentives to small businesses, but only as a permanent measure.

Bush did not specify how much money individuals and businesses would regain, although he suggested the overall package equal about 1% of gross domestic product. He also did not say whether the rebates would target all taxpayers or just certain brackets — and that was the question on the mind of Laura Miller, the executive director of the Orange Coast Interfaith Shelter in Costa Mesa.

“If you haven’t been paying into the tax system anyway, you’re not going to get anything back,” said Miller, whose shelter services many people who are unemployed. “That’s my understanding.”

Even if the rebates benefited everyone, she said, most of the money would probably go to rent and other necessities rather than boost consumer spending. That was fine, though, with Richard Luehrs, the president of the Newport Beach Chamber of Commerce, who said a rebate of any kind was good news for spenders.

“Any time the federal government is willing to give you money, we’re glad to have it,” he said. “I think this is a good thing. It probably won’t stave off a downturn in the economy because of the sub-prime markets and all the things that are going on against us, but it sure will help.”

MICHAEL MILLER may be reached at (714) 966-4617 or at [email protected].