Mar 18, 2008

Economic Stimulus?

Perhaps there is an economist out there who can explain this to me.

When I first heard about the stimulus package being proposed, I thought to myself, how is this going to help the economy? How does handing out a one time lump sum of money benefit anyone other than maybe Mr. Bush's public image during his last few months in the White House?

Let's face it, most of the taxpayers are going to do one of two things with that money. Those that are living month to month right now for whatever reason, if they are smart will pay a bill, maybe two. Those that are living month to month but still don't get the "big picture" are going to blow it on a trip to Disney or a new TV.

In either case within the span of about 48hrs I'm guessing, the cash will be gone! So, now what happens the next month after the refunds are mailed and everyone is broke again with no money to stimulate anything? Our government can't keep giving out refunds.

So maybe it's up to us to try and stimulate our own household economies and stop the wasteful spending, invest what we save in the market or mutual funds and that way we will be strengthening our economy and saving for our future's at the same time.
Just my thoughts.


espionage said...

It is actually very intersted, but exactly the reason they are giving the package is so that we will blow it. There will be a huge burst of money given to stores, etc. and that will apparently "help" the economy. Funny thing, though, about what will happen when the peak spirals downward (like you said)? I think it's ignorant personally and completely agree with you. I mean, our president did say, when the twin towers were hit, for us to go out and spend to support America. I mean, out of all the things he could have said he said to SPEND!

Nodin's Nest said...

Ah yes, our ever eloquent president. Thanks for reading!

Helen said...

I think s lot of it will be spend on electronics but I think the vast majority will safe it or use it toward bills.

Nodin's Nest said...

I sure hope some of them save it!

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