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.

I finished

Some time ago I started my taxes and today I tackled finishing them! Join me and everyone at 5 Minutes for Mom, tackle something on Tuesdays.

Taxes

Today I tackle my taxes. Enough said.