# Stimulus?
Today the Senate passed a $170 billion stimulus package in the face of a possible recession. A portion of this package is a tax rebate program that gives families anywhere between $300 to $1200. The whole point of these rebates is to encourage spending and increasing consumer confidence. It’s funny to me that the whole reason we are in such an unfavorable economic position is because of irresponsible spending. Our nation is in massive debt, many are suffering the consequences of bad lending habits. I thought the biggest problem WAS spending.
The success of this entire stimulus package depends upon the people being irresponsible with their rebate rather than saving or investing it, and when considering what lies ahead might be the wisest option. Strange, isn’t it? It would be awesome if everyone just put in the bank. It would then be all for not and our deficit would be $170 billion larger.
Obviously, I know very little about economics and I’m sure that this plan might in some way benefit the nation on a short-term basis, but it just seems strange.
February 7th, 2008 at 4:52 pm
Isn’t this the second of such packages under W? ‘Cos that worked….
February 7th, 2008 at 5:01 pm
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February 7th, 2008 at 6:59 pm
I couldn’t agree more. We should pay off our national debt before we add MORE spending to the budget! There’s a reason the dollar isn’t worth as much as it used to…
February 7th, 2008 at 7:14 pm
If the government can produce wealth out of thin air, they should use the same magic to produce knowledge and wisdom. We could use a stimulus package like this one for education. Let the evasions roll!
February 7th, 2008 at 8:27 pm
agree w/ Drew. I don’t remember much about the first time around, but I don’t believe it was any sort of success. This is why i was so surprised there was such a huge backing for it. People are going to blow this money then get bit in the ass when they have to claim it next year.
February 7th, 2008 at 11:07 pm
Yo Zach,
I totally see where you’re coming from here, but capitalism-based economics are a bizarre thing. True stimulus does indeed result from market-based activities, or in short, buying/spending. An alternative way to look at how we got to this economic ‘bottoming-out’ is that the “irresponsible spending” was done with the banks’ money not that of the people. If people spend money that they actually have (rather than a borrowed asset), then a market based economy thrives. It’s just kind of the nature of the beast.
The rub for me comes when we look at all of this as followers of Christ, because our market based system thrives on consumption and it ultimately collapses (or recesses) because of greed. That is a tight-wire that many of us are not able to walk prudently, regardless of what we believe. And as I’ve read some of Greg Boyd’s insights, I’m left wondering how to approach our nation and culture from a Kingdom-building mindset…
Just throwing out some thoughts,
- Adam
P.S. I was also thinking about what would happen if a critical mass of Americans took their “stimulus” cash and, instead of spending or saving it, gave it to the poor both domestically and abroad. That would make for an interesting scenario
Now if we could only find a critical mass of Americans… where might they be…
February 8th, 2008 at 6:43 am
I plan to use my “stimulus” cash and put it towards Kiva.
I was talking to a co-worker about the absurdity of this plan and I compared it to putting a band-aid on a bullet-wound, or prescribing an aspirin to a cancer patient. There are much bigger issues at hand that a few bucks in our pockets will not fix. We need to reign in the fiscal irresponsibility that has plagued all of politics (both the right and the left) for so long. I would guess that this plan will do very little in the long run.
February 8th, 2008 at 9:49 am
i think if i get any money, i’ll just put on my george bush mask and film myself burning the check and put it up on youtube.
thanks for the comments everyone!
February 8th, 2008 at 11:24 am
You’ll all have to forgive my selfishness, but I certainly plan on using it to make up for the $1200 or so I have to pay in taxes this year. I guess, me and the govt just zeroed out.
February 10th, 2008 at 4:40 pm
Your intuition about saving is correct - the problem with the stimulus is that the rebate still has to be paid for at some point. This will either need to be done through increased future taxes or through printing more money. As an economist, either of these options are not preferred. Even though recessions are painful, they are necessary to cleanse the economy. Sadly, the only way to not have recessions is to not have a Federal Reserve or any entity that has sole control over printing money. The reason I say it is sad is due to the fact that our government would never rescind such control.
February 12th, 2008 at 9:04 pm
Marcus, you sound like a true Ron Paul supporter…