Sunday, January 20, 2008
Two Questions on a Sunday Night
Part of the Bush stimulus plan aimed at heading off a recession would be giving individual tax payers a little check (I’m seeing something between $200-300) in hopes of stimulating short term consumer spending. Of course, there are other reasons to do this and the entire stimulus package will contain other components, but this check from Uncle Sugar to you is what I want to talk about.
First: Do you think that individual checks like these are a good idea in heading off a deepening recession and why?
Second: If the stimulus package is approved, what will you do with the check that you receive?
Comments & Trackbacks
I don’t think so.
The check I receive will not cover that big ticket item I would buy, so I will pay a utility bill.
That and it’s just an advance on your tax return (if any) and you will owe it back next year. Assuming it works the same way it did last time anyway.
I’ve seen some commentary on this topic at the Wall St Journal, who think that a one-time check is an ultimately futile gesture. The money will go to pay daily bills, or be squirreled away. Far better is the long-term effect of a real tax cut as that constitutes money that will be here today, and next year too, like a raise at work. This sort of incentive is more likely to be used as discretionary spending money.
Carter proposed a one-time injection of $50. Someone else likened this to dumping money from a helicopter. Fun once.
The gov would also be well advised to check the ratio of the dollar to the value of the paper it’s printed on. Improving this would help too.
What would I do with an extra 2-300? Bank it. The dentist will wind up with it sooner or later.
HOOKERS AND BLOW, BABY!
Cheap hookers and a leetle bit of blow. Viva Las Vegas!
The rebate will, or at least should, represent a one time tax reduction, so there we won’t just have to pay it back next April. As for the first question, tax reductions are generally a good idea, so I like it recession or no.
I’ll spend the money campaigning for bigger checks!
I don’t think that Bush’s stimulus idea is very good, but since the alternative will be for Congress to pass out real hookers and blow in the form of pork barrel falsely labeled as economic stimulus, its a great idea.