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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