vc318

Hey guys. I figured that every Sunday, we could start a Topic of the Week discussion on anything that we might find in the newspaper, t.v. and so forth. Here's one that might be on the minds of everyone in the U.S. this week:

Bush says rebates going out Monday will boost economy - 04/26/2008 - MiamiHerald.com

Even though I'm all for receiving this money, I can't see how this will stimulate the economy. Won't most people use this money to pay the mounding bills they have? Or maybe I'm wrong - is anyone going to hit their local Best Buy and purchase that big flat-screen t.v. they always wanted?

Discuss away!

ceilirose

No - it will go right into paying bills. It's all show and no relevance.

It goes by the last two digit of your social security number I believe which means I don't get mine until sometime in the summer.

sunnykerr

Good topic.

I can't say as I understand much about this idea. I don't understand how they're supposed to help anything. The economy is in a recession. It got there (in part, because I'm sure economics are way more complicated than my understanding of them) because, for the first time in history, the U.S. government introduced tax cuts during a war (i.e. when there's an extra place where the federal budget needs to pour money).

Also, from what I understand (and correct me if I'm wrong), but these will be fairly negligeable amounts of money. Well, not if you're in high school and have no real financial responsibilities. But, you know, anyone with a mortgage, kids to put through school... heck, kids to feed every so often... It's not gonna do much in the way of creating new income, shall we say.

But, like I said, I'm not really of what the point of them is, so someone feel free to enlighten me.

vc318

This article was just released about what others plan on using the tax rebates for:

Stimulus checks arrive, but will they work? - 04/29/2008 - MiamiHerald.com

Sunnykerr, you said it right - the country is definitely in a recession. If not that, then mostly everyone is severely depressed or worried from the housing slump, raising fuel prices, and other things to even want to spend another dollar on anything else but the basic necessities.

migamoo

I think some people, who can afford to, will buy something 'big' but I think for the most part, people are going to be paying bills. I know that's what I'm going to be doing.

sunnykerr

Well, that's it. You can't have policies that (indirectly) reduce people's budgets (whether through the deficit, or the inflation, or whatever else), then turn around and send them a small cheque and expect that to boost the economy.

There's nothing I like about this current President. I'm just putting that out there so that we all know how to take what I'm about to say. I'm well aware that he's not personally responsible for the economic decisions taken under his presidency, but it is his administration that's slashed taxes from the big conglomerates. It's his administration that's added about twelve different complications for every new tax code they write.

I'm sure no one means any real harm to the general populace. I'm not naive enough to think there isn't some part of it that's about helping out the people who back him/them. But I do think that this whole theorem of cutting industry people's taxes to lead to more job creation has been proven wrong. So, I would think, they would have changed strategies by now.

Just my two cents.

Lain

Part of it would go to my tuition this fall (which is rather cheap since I'm only taking one class). The rest is for San Diego

Dana_Lana

We will probably use half for bills and the rest for extra spending money.

Or GAS!

I think we are getting $1500..since I am married with one child..right?

Uh Blah

I got mine on Monday. I haven't spent any differently yet, but I hope to pay off my credit card bill so I can increase my spending limit. Then I'll be in even greater debt.

Seriously though if they wanted to stimulate the economy then the $ should've gone into reducing the gas prices. Encourage people to travel locally & they'll spend locally!

migamoo

Not even that, but maybe giving more money. Other than trying to pay bills, like a lot of Americans, what did they expect us to do with this money?

Uh Blah

Yeah but it's not like it's free $ lol it has to come from some where.

mh67511

I think the checks are a great idea and I am glad to get mine soon. Even if people use it pay off credit cards, that will help because we need people to start paying their bills and stop defaulting which hurts EVERYONE companies who lay off employees, investors who lose money in their 401K's and investments, etc. Really though, Americans just have to learn to be more frugal! It will hurt in the short term, but in the long run we'll all be better off.

This is much better than creating some "program." Just give us the money and let us decide how to use it.

Off topic but can I just say I HATE the CNN ad for the mortgage meltdown that says, "Didn't read the fine print on your mortgage? They didn't either." Uh, if you don't read the fine print on most likely the LARGEST purchase you will make in your lifetime, you are a bleeping idiot!

ceilirose

But $600.00 for a single person or even $1,200 for a married couple is a drop in the bucket. Salaries have not kept up with rising costs and I can't blame companies that go under or stocks that lose money on people defaulting. Sometimes these businesses are run poorly. What adds insult to injury is that the CEOS walk off with millions, maybe billions but the people at the bottom lose everything.

If what Clinton says is true then a person making 50 million pays a smaller percentage of taxes relative to what they make then a person making $50,000.

I'm all for paying my fair share of taxes but maybe instead of giving back more they have to restructure the tax codes? Have those who make more pay more? Sounds good to me because no one will ever agree on what services/programs to not have because at the end of the day - everyone wants those "services" they all say are excessive.

vc318

Yes, that's right. It is $1200 for a couple and an extra $300 for each child.

You're right cellirose, as with everything it's always being taken from somewhere. Like right now, they've had to cut toilet paper, paper towels and soap from my school due to budget cuts and that's just the beginning! How can an elementary school not have these supplies? I guess I'll be using the money to buy that stuff. And now there is talk of freezing salaries and such. Everything is just too expensive. I think this money will be helpful with bills and basic necessities but nothing more.

ceilirose

You know every time I hear about teachers having to buy supplies for their schoolrooms with their own money or how parents/teachers have to pool money and talent to maintain the physical school property itself it drives me nuts.

How many trillions of dollars are we sending to Iraq that isn't even being accounted for and yet we can't supply toilet paper for our public schools. It's just so disgraceful.