Extra Money to Boost Economy?

[LowCarbLife]

Soooo, I received word that the goverment will be sending out $300-$600 checks to all citizens to try to boost our economy! Does anyone know more details about this...not that I am complaining...I'll DEFINATLY take that 600 bucks and spend like crazy! :)

Thoughts?

[yankeeyosh]

It will be a boost, and it may stave off recession, but I think that there are so many fundamental problems with the economy right now that it won't help long term.

[redav]

Saving at least a good chuck of it for the harder times that will come later would probably be better for everyone than spending it all immediately.

[lostindc]

I think it is a bribe by the incumbents who are afraid that the economy might cause them to lose their next election. It sort of reminds me of a computer game called Tropico where you are a dictator, who can rig elections and bribe the population with tax cuts to keep getting elected.

[slimjim]

It will be a boost, and it may stave off recession, but I think that there are so many fundamental problems with the economy right now that it won't help long term.

Actually, this has been tried in the past a few times and failed. To many people (over 50%) saved it, some 30% payed off debt and the rest put it back into the economy. The multiplier effect doesnt work if everyone saves it. I'm a republican and I can tell you with a straight face that this is pure politics. If this wasnt an election year we wouldn't be talking about rebates. If you want to help the economy you need to give businesses an incentive to invest and then hire more people. You do this buy offering accelerated depreciation so they buy / expand plants and hire more people.

And by the time the battle over this gets through the senate and you actually get your check, we'll be out of any recession that we may slip into.

[NewMrs.]

Actually, this has been tried in the past a few times and failed. To many people (over 50%) saved it, some 30% payed off debt and the rest put it back into the economy. The multiplier effect doesnt work if everyone saves it. I'm a republican and I can tell you with a straight face that this is pure politics. If this wasnt an election year we wouldn't be talking about rebates. If you want to help the economy you need to give businesses an incentive to invest and then hire more people. You do this buy offering accelerated depreciation so they buy / expand plants and hire more people.

And by the time the battle over this gets through the senate and you actually get your check, we'll be out of any recession that we may slip into.


One one of the other message boards that I visit, one or two people admitted that they planned on spending their rebate money on upcoming vacations in Europe.

Most of the people on that board flat out said that they were using the money to pay off debt.

[eastcoaster782]

Where's the govt. getting the money from?

Did we just sell Texas to Mexico? :p

[awhitmer83]

Is this going to be like the last batch of rebate checks where it is considered an "advance" on your tax return for the next year? I remember how pissed my husband and I were when we lost part of our tax refund because we got it earlier in the year. We now have to pay in, so I would rather hold onto the money if this is going to be the case.

[spiritedaway]

I'm glad we're getting some money back. I don't know how I will spend it, but I will probably save for a planned trip for later in the year, buy some home stuff, or use it for pay off some debt.

I just did my taxes this weekend. I don't think of $600 as "extra" money, but the money that the government is returning back to me. They took many times over that amount from my paychecks over the year for federal withholding, so I sort of think of it as $ that I already earned anyway.

Sometimes I shuddered to think what would happen when people OUR age hits retirement age 30-40 years down the road.

Last I heard, the stimulus passed the House and went to the Senate for review. I don't know if it's passed since...and is the amount $300 or $600 per individual?

[LowCarbLife]

Is this going to be like the last batch of rebate checks where it is considered an "advance" on your tax return for the next year? I remember how pissed my husband and I were when we lost part of our tax refund because we got it earlier in the year. We now have to pay in, so I would rather hold onto the money if this is going to be the case.

Ummmm that is NOT COOL. Sorry, I have never gotten to experience that. I guess you have to be prepared for anything these days. I'm hanging onto mine so if they try to pull a stunt I will be ready. I was really looking forward to a new TV though :)- I still may squeeze the tv outta this!

If it is a tax advance I sure hope that I know better.

[AsianGeek]

yeah that check is going straight to my piggy bank. I already budget how much I allow myself to spend every month. And I have every luxury that I really need right now except a down payment for a nice house.

[redav]

If you want to help the economy you need to give businesses an incentive to invest and then hire more people. You do this buy offering accelerated depreciation so they buy / expand plants and hire more people.
These were included in the plan Bush sent to congress. I don't know if they are still in it after the compromise.