Friday, February 01, 2008

Feeding Frenzy - Economic Stimulus Bill

The Senate is set to begin voting on dueling economic aid proposals, as senators rush to add jobless benefits and tax rebates for high earners, the elderly, and disabled veterans to a House-passed package.

This is a little quote from some news source yesterday. I think I read that the cost of this economic stimulus bill is now about $150 BILLION. I'm not an economist so maybe I'll never understand how this is suppose to FIX the "potential" recession. The USA is already spending more than they are getting in taxes and the nation is in debt in the trillions. Isn't the $150 billion just going to add to the debt that the taxpayers will have to pay back at some point?

I just don't understand how a check from the government for $300-$600 or whatever amount is going to do more than make a short term blip on the chart. What will they do in the third quarter? the fourth quarter? So many people who are interviewed on TV about what they will do with this subsidy have said that they will pay it on credit cards. Will paying for goods and services already received stimulate the economy?

If we get one of these checks, I guess we'll just put it in the bank. Have you thought about it? Do you have plans for your government subsidy check?

4 comments:

pitchertaker said...

While you and me probably have most of the "stuff" that makes our daily existence comfortable (not counting being uncomforted by cast on one's foot :-) )most people will go out and buy that "have-to-have 72" plasma TV that they still can't afford. However, I assume that there are people who will actually use the money to some constructive end, but I have little doubt the most will merely squander it, and in the end wind-up in exactly or worse economic circumstances as before. However, the country will merely have more national debt, and definitely be worse off than before. Such is the Bush thinking: "I'm gonna' leave this here country worsen than I found it. So hep me Gawd." Sad part is none of the "front runners" in the up-coming presidental elections are offering any more hope than "keep on keeping on" -- change seems to be operative work these days, but change to what. I'm just not interested in any of them....sigh.

P'taker

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macmember said...

We are going to spend ours on a trip to Mexico....heehee and say "thank you very much" to the Government. I don't look a gift horse in the mouth. They give the money to all of the BUMS and Crazies, I'll take what ever they want to give me, because they are going to spend it all (and more) somewhere.

Anonymous said...

I'm going to endorse my check right back to the US Treasury, since they never seem to be satisfied. Federal income tax is my biggest expense by far.

And it seems like too much spending on credit is what got us into this mess, so more spending on credit is what's supposed to get us out???

Wal Mart stores corporate motto is "no everyday low prices without everyday low costs." Well, I have yet to hear any politician, charge-card republican nor tax-and-spend democrat say that you can't have everyday low taxes without everyday small government.

Seems like they could take a page out of Wal-Mart's book.

Regards,
Kim G
Boston, MA