Thursday, February 7, 2008

economic stimulus?

well, the more extensive economic stimulus package got rejected today - not unlike a swat from shaq, sending your perfectly constructed jumper into the stands. on a selfish level, i am a little disappointed. i mean, lets be real, less money for me sucks. at this point, i'm looking at $900 vs. $1100. here's what i don't get: this whole idea of injecting money into the economy to "stimulate" it seems like a good idea, but will it really work?

recently, i read a study somewhere (i forget where or i'd link it) that your average citizen receiving this rebate will less likely put that money into the economy and more likely use it to pay off debt they already have. hey, that was my plan. i don't know the numbers, but i do know that personal debt is a mutha right now and it's ruining people's shot at the american dream. i guess maybe that means the economy will reap the benefits of this plan eventually.... i.e., you pay off your debt now, get your credit back together and then buy a house in five years. i just have a feeling that 5 years isn't fast enough. politicians are going to be looking for stimulus before the regime change, because that's what this is really about: the american people generally hate the leader of the free world right now and he needs to do something to "make up" the last 7 years to them. who am i kidding though? it won't happen in that round-about way anyhow, considering a few hundred dollars on debt is like punching a brick wall.... you're not gonna dent it.

but maybe, just maybe, the greed and the selfishness will take over and we'll all run out and buy a new wardrobe or an MacBook Air instead. i had also considered a new bedroom set. i'm not gonna lie here - large lump sums of money equal instant gratification for me. i'm trying real hard to be financially responsible here. perhaps the government is counting on the general public to be just as self indulgent... and financially irresponsible... as i am?


Lighter than Muki, but darker than Kris said...

Your analysis is fairly insightful. The idea of giving some people money (very little money) and expecting them to all go out and cop Gap clothes and new Cd's isn't a bad one, but people need gas money and groceries right now. Once again, congress and the president are being silly.

Anonymous said...

Hey Kara! I really enjoy reading your thoughts on your blog. I would love to see the government LOWER taxes in the first place and let me KEEP more of my hard-earned money, rather than give me *some* of it back and hoping I will stimulate the economy by running out and buying stuff. I'll show them - ours is going right into the bank!