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Economic Stimulus
By Daphne | January 24, 2008
As more people are cutting back in their own expenditures in order to put the money somewhere else or because easy credit is more difficult to get our consumerist economy suffers.
On MSNBC this morning, I heard a manager at a large U.S. based beverage company with bottlers overseas was saying that people still need to eat and drink and that her company’s product was definitely comfort food. Maybe because I’m not that tied to soft drink so I don’t think that a soft drink is comfort food.
Even when the economic stimulus package is worked out it is doubtful that there are going to be hoards of people running out to buy frivolous items. Many people may use the money to buy necessities or pay for utilities or fuel.
If you received $600 today it would not be enough to retire rich but you could pay off some of your credit card debt, save a little for the future or maybe even splurge for a nice a meal or something. The U.S. government is hoping that you lean toward splurging.
The New York Times has an article today about a possible deal on an economic stimulus package. It is not until the end that you hear something that makes sense:
“Giving temporary tax rebate checks to families, as important as that is, is not the same as economic growth,” said Representative Jeb Hensarling of Texas, chairman of the Republican Study Committee. “If you’re going to have an economic stimulus package, it ought to contain some economic stimulus.”
To stimulate the economy, our country has to work within the global marketplace but also needs to bring manufacturing jobs back to the United States so that people can work, raise families and have a sense of value.
Both democrats or republicans agree that something needs to be done but they aren’t sure. Though many of the representatives are not millionaires they are generally more flush financially than other people who do not really understand joblessness, potential homelessness and aren’t as affected by fuel prices.
To stimulate the economy people need to spend money. People are not just tightening their budgets here it is globally. If you have no money to spend then you don’t. If you feel uncertain about whether or not you will have money to spend later, you hold off on spending.
The tax pre-bate that we will probably receive is supposed to make us spend. Who says that people will spend the money that they receive in order to boost the economy? The last time that we receive a tax pre-bate we didn’t have fuel prices this high, the housing market wasn’t tanking, the dollar and the dollar was stronger.
When your check comes as a result of the economic stimulus package use it the way that makes the most sense to you. If you need to buy food or contribute to your own savings, or pay down your debt, do it. Moderation and frugality, seem to be the wisest choices at the moment.
Topics: January 2008 |