Quote:
Originally Posted by The Germanator
I find that part to be an interesting theory....The idea being that if someone receives a $600 check, they'll probably save that and throw it right in the bank. But, if they have an extra 10 bucks, maybe they'll go out for dinner or a movie because it seems like a more frivolous amount it might turn into frivolous spending. A small step, but probably a good one.
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If anything I think it will get thrown into diapers/food/gas etc. The number is so small it's almost too little to be considered beyond necessities, much less stimulus, IMO. The question we have to ask ourselves is this: Does $13 a week build any confidence in a frightened consumer base?
I'm not a fan of tax payers receiving a big check once a year, for reasons I've talked about earlier, but I also don't think an extra $13 a week is going to help anyone pay their mortgage, spring for the extra bedroom addition they need or buy a new car. Stimulus is intended to stimulate the economy that makes work, and work creates jobs.
I've been biding my time on judging the stimulus, hoping that it will work despite my philisophical objections, but I'm confident enough to say that this stimulus bill will fail. The more I read about this stimulus, the more I realize that it isn't one. Small businesses have receive little to no help (unless small business regularly give out huge bonuses and buy private aircraft), and they employ over half of Americans. The middle class has received little to no help. So far the only groups that have made out on any of these legislative actions are large corporations and those that don't pay taxes in the first place because they'll be receiving free money through "tax credits", and are very unlikely to create any jobs with only a few hundred dollars extra a year.
There is NO stimulus to investment at all, and we see the results in how the stock market has reacted to the bill. Investment FUNDS our private enterprise and creates jobs, and it's been ignored.
The housing bill aids those that entered into bad mortgages and speculated using risky loan products, but doesn't help people who signed good motgages but have been laid-off and are having trouble making payments. It's pathetic and rewwards people for making poor choices, rather than helping everyone in trouble across the board. You know what would help people pay these mortages? Keeping a lot more of their own money.
Meanwhile small businesses and the middle class are left holding the bag, with the slim hope that public works projects will get the economy going again... the only problem is public works have NEVER improved the economy or created long term jobs, as illustrated in the Great Depression.
It's just so frustrating to see such opportunity get squandered because politicians only care about private enterprise as far as their campaign contributions take them. It's either big business or no business when it comes to stimulus help... meanwhile storefronts in my area keep emptying and unemployment rises.