The President Signs the Stimulus Package and Asks Us to Spend Borrowed Money

By May, US-tax payers will begin receiving $300 to $1,200 rebates in the mail. That's more that 130 million check or more that $168 billion added to the deficit! Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples, with an additional $300 for each child. The IRS says if you filed a 2007 return, you need do nothing more, other than spend the money. According to President Bush, this is about 1% of GDP.

The only problem is that the stimulus package does not directly address the problem. This economic down turn started after all with a decilne in housing prices and I don't even a couple of thousand dollars does much to fix that. Although, the Fed's lowering interest rates should help homeowners who wish to refinance, it doesn't do much for those who are under water on their mortgages, owing more than their homes are now valued. You know, the ones who are simply walking away from their loans, putting pressure on the financial system!

The government just wants you to go out and spend this money as quickly as possible - by some new clothes, or maybe get a new paint job for your car or just blow it on a hot night on the town! Like the dear uncle who is lending a helping hand during a tough time. The only problem is that dear Uncle Sam doesn't really have the money to give us and is borrowing it from our children.

Thinking about it like that it seems a little fool hearted to just spend the money, so maybe we should just use it to pay down some bills!

 

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The President Signs the Stimulus Package and Asks Us to Spend Borrowed Money. Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples, with an additional $300 for each child.  More