Second round of Stimulus Payments? and what you spent your first check on?

Replies to This Discussion

Permalink Reply by Andy on October 30, 2008 at 11:11am

Geez... wish i had some free money from my government (hint hint Mr Brown).

▶ Reply to This

Permalink Reply by Tsuko on October 30, 2008 at 5:06pm

You now owe less money, right?, so technically, you are now 600$ richer. Also whoever or whatever loaned you the money changed non-existent IOU money with real cash, IOU money is less trustworthy than real money, and non-trustworthy things often end up going down in value really badly on the almighty free market.
The current economic crisis can be resumed to a lot of people realizing that their stocks where bubble money. By replacing bubble money with real money, things *should* get better. (the current bailout plan is pretty much akin to adding more soap, instead of replacing bubble money).
That money is supposed to come from taxes, which are supposed to re-distribute wealth. Obama's proposed tax plan is pretty much an increase of taxes on the 5% of the population that haves more money. There is where the extra money is supposed to come from.

▶ Reply to This

Permalink Reply by Leadpipe on October 31, 2008 at 9:27am

As I understand it, this economic stimulus package that's under discussion now isn't a direct-to-consumer payout so much as it is investment in infrastructure. The idea is that it will at once create jobs and inject money into the economy as well as provide things that are needed (roads, bridges, network infrastructure, etc.) which will enable more economic activity.

As to where the money is coming from, the government has a couple of options. They could print more money (unlikely, as it causes massive inflation) or they can borrow the money from foreign governments. It's what we've been doing a lot lately, but it's going to come back to bite in terms of higher taxes down the road - with any luck when the economy is in better shape.

▶ Reply to This