Mo' money, mo' problems
Issue date: 2/18/08 Section: Opinion
The next time you're out shopping and notice a valued item on the clearance rack, ask yourself, is me saving money really helping the economy? Or the subsequent time you go to Wal-Mart because it offers low prices, remind yourself that President George W. Bush wants you to put a healthy portion of your money back into the economy.
The economy is a serious issue, but it's not one that can be solved by putting the nation further into debt. A government that is already $9 trillion in debt cannot resolve recession. It is simply part of a cycle that sounds terrible politically but can work itself out naturally.
Bush recently signed into law a $168 billion stimulus package (for a $14 trillion economy) that offers rebates to Americans ranging from $300 and up, depending on which tax bracket the receiver falls in and if children are in the picture. The fundamental problem with a stimulus package could be summarized by Newton's Law: For every action, there is an equal and opposite reaction.
The $168 billion dollars weren't grown from a tree, and Nicolas Cage didn't discover the lost treasure of the freemasons - it was borrowed. Therefore, somebody else (in this case, those who bought government bonds) has less money to spend.
However, that is not the only indiscretion with the stimulus package because those people can afford it. At some point in this nation's future, somebody will have to pay for the massive buildup of debt, and China may not always be willing to lend a helping hand.
The people who qualify for the rebates will then have to make a choice on how they want to spend their greenbacks. One option would be to follow the president's order and buy that flat-screen TV or digital photo frame. Or, you could put it into savings and let it accumulate interest. Most Americans, especially the elderly living on fixed incomes, will choose the second. Some, however, may select option three, which would be pay for their rising health care costs.
The economy isn't something that can be cured by waving a magic wand. It takes time, and the American people cannot be swindled into spending free money that is putting their country further into debt.
The economy is a serious issue, but it's not one that can be solved by putting the nation further into debt. A government that is already $9 trillion in debt cannot resolve recession. It is simply part of a cycle that sounds terrible politically but can work itself out naturally.
Bush recently signed into law a $168 billion stimulus package (for a $14 trillion economy) that offers rebates to Americans ranging from $300 and up, depending on which tax bracket the receiver falls in and if children are in the picture. The fundamental problem with a stimulus package could be summarized by Newton's Law: For every action, there is an equal and opposite reaction.
The $168 billion dollars weren't grown from a tree, and Nicolas Cage didn't discover the lost treasure of the freemasons - it was borrowed. Therefore, somebody else (in this case, those who bought government bonds) has less money to spend.
However, that is not the only indiscretion with the stimulus package because those people can afford it. At some point in this nation's future, somebody will have to pay for the massive buildup of debt, and China may not always be willing to lend a helping hand.
The people who qualify for the rebates will then have to make a choice on how they want to spend their greenbacks. One option would be to follow the president's order and buy that flat-screen TV or digital photo frame. Or, you could put it into savings and let it accumulate interest. Most Americans, especially the elderly living on fixed incomes, will choose the second. Some, however, may select option three, which would be pay for their rising health care costs.
The economy isn't something that can be cured by waving a magic wand. It takes time, and the American people cannot be swindled into spending free money that is putting their country further into debt.
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2 Points
posted 2/17/08 @ 9:51 PM CST
First of all, we are not in a recession...yet, and Bush signed it after it flew through a Democratic Congress.
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