You’ve just received $600 dollars! What will you do next? You could buy and Xbox 360. You could go on a cruise. You could buy a new gun or adopt a puppy. But what will most people actually do with this new found cash? Where will this money actually go? Will it really stimulate our economy? And finally, why are we doing this?I think you're right on the money, if you'll pardon that unintended pun. This stimulus package has no chance of being anything above ineffectual. With the American economy where it is, with everyone in debt and most of our products being manufactured overseas, and nearly all of the products being sold by giant corporations, our own economy will not receive any benefit from this alleged stimulus package.
First of all, this “stimulus package” will affect our economy as much as your individual vote will count in the Presidential election (not including Floridians). Most people are probably in debt from higher prices in everything from gasoline to milk. So, $600 would make a dent in their debt. Will anyone use the money for personal desires? Of course! There are enough irresponsible people in this country that will ignore the average credit card debt of $9,900 per household in America and go get laser hair removal done. We’re not really going to see an increase in jobs or national revenue though. Those that spend their money right away will send their money straight into the belly of businesses that are just going to pay off their debts from high gas prices and discounts they can’t afford to give. So overall, only debt collectors are really going to benefit from this government induced stimulus.
If this package was really something to benefit US citizens then they should have just taken the money and put it towards lowering gas prices. The total stimulus package will cost the US around $152 billion. Five gas companies have made over $123 billion this past year and they’re getting tax breaks! Hello! Let’s use our money to regulate the oil companies and lower gas prices. If gas didn’t cost on average over $3.30 a gallon then people might be able to afford to travel more or buy more luxury items. Don’t get me wrong, I’m looking forward to receiving that $1200 check my wife and I will receive in May (at the earliest). But we’ll probably just pay off some credit card debt because we can’t afford to drive to the bank to cash it. You want to stimulate the economy? Let’s start another war and stop buying our supplies from China.
If anything, the economies of Taiwan, China and Mexico will be stimulated as most of the things we purchase with our free scratch will have been manufactured in one of these places by exploited laborers.
And there's there rub, a lot of it, like you pointed out, will be spent on existing debt, so there's no stimulation at all.
If anything, I think this package is intended to soften the image of the Republican party leading into the Presidential Election. I guess we'll see if we, as a people, can be bought off for so little.
Excellent observation.
