Jan 29, 2008

House Passes $146 Billion Economic Aid Package

The House voted Tuesday to approve a $146 billion fiscal stimulus package, hoping to quickly seal a fast-paced deal with the Bush administration.
Some changes were made though. There will be no extension of jobless benefits or temporary increase of food stamps. Seems to me that folks who are unemployed or on food stamps might just be the ones in the most need.
The amount to be received has been changed also.
$500 to some 20 million Americans over the age of 62 who live only on Social Security and $500 for individuals and $1,000 for couples filing jointly with no income cap for eligibility, and for families an additional $300 a child.
I would think that if people can afford it, it would be better to just put this windfall in the Bank. I really don't see how this is going to do anything to 'stimulate' the economy.
What do you think?
Rybu said...
The point behind this is not to help individuals but the "economy".
The Government wants the money to be spent not saved.
The idea is to try and keep consumer spending strong.
I have a feeling though that the people that need it most will be the ones that spend it while those who don't need it will save at least portions of it.
I wrote about the proposed stimulus package here

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8 comments:

Kevin said...

I am not sure how much it will do for the economy, but I will be spending the additional money. It will come in quite handy when I move in the near future. :)

Though, I would rather save it...

Carol said...

Moving? Where ya going?

steven wilson said...

The stimulus plan does nothing for the people that need it the most.The low income earners have been almost left out of the plan as always.The excitment of people claiming the government is giving them something is crazy.They are giving you nothing more than money back from what they took from you in the beginning via taxes from your hard earned paycheck.

impeach bush,chenney now!

Carol said...

Hi Steven,
Wow long time no see here. I agree 100% with what you said. Government never gives something for nothing they just package it up so it doesn't stink so much.

Rybu said...

The point behind this is not to help individuals but the "economy". The Government wants the money to be spent not saved. The idea is to try and keep consumer spending strong.

I have a feeling though that the people that need it most will be the ones that spend it while those who don't need it will save at least portions of it.

I wrote about the proposed stimulus package
here

Carol said...

Hi Ryan,
I know that the idea is to stimulate the economy but it's more like putting a band-aid on an open sore. How long do you think it will take to spend $600. So perhaps a quick boom and then fizzle.
Thanks for taking the time to comment.

Rybu said...

I am a firm believer that it will help the economy however, at what cost? It seems like "cheating" to borrow 150 billion to stimulate an economy. That isn't organic growth, which is the kind needed to grow longer term.

Carol said...

Hi Ryan,
That's exactly my point - it will help in the short term and then what? We must FIX this not be like the little Dutch boy who put his finge rin the Dam - agree?