Rebate checks in the mail by spring
As a poor college student I am always happy to hear when the government is handing out free money. I know everyone in America is always happy when the government gives you money and you don't have to give them money. With the recent passing of the legislation to allow rebate checks to go out to Americans, many Americans will be looking forward to this. However, it stated in the article that not everyone will be spending it right away. It stated in this article that in 2001 when rebate checks were sent out not all Americans spent the money right away and it took them 3-4 months to decide what they were actually going to spend it on. I read in another article which I was not able to find again once I was ready to post that many times Americans will use this money to pay bills or to invest in some way. So if Americans are spending it on their daily lives and are really not putting money back into the econmy like the legislation is designed to do, what exactly will our economy get from this. If its anything like the past this will not change our current econmy. Don't get me wrong I am not complaining about free money, but history doesn't seem to be in our favor.
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4 comments:
It is great when we get money back from the government, but as you said most people use it to pay for things they owe money for. It unfortunate that when the government gives Americans rebate checks, we end up using it on rent, bills, etc. Truth is most Americans can't afford to waste money by putting it back into the economy some how. When we do get money back its most likely money we deserved, yet many people have to use it on bills.
I have heard that checks will be in the mail by May. This may prove to be a short term fix, but it will not solve any major issues. I doubt anyone will go out and buy a car with this money, but it could be used as a payment on one they have already. What is needed is permanent tax breaks that allow more money to stay in the pockets of tax payers, who then can save, spend, or do whatever they want. But as we see Congress is busy with Baseball and the New England Patriots to do anything of value. Maybe it's time for the people to elect Congressmen who will do their jobs and not just try to get free television time.
Yeah alright it is good that we are getting this money back and it will help stop an even greater recession from occuring, however the fact that people are paying off bills and putting the money back into the bank is not such a terrible thing either. Since there is so much debt in this country there has to be a way to get rid of it and all the loans that have to be repaid, this also is a way to do that too. The country has got to this point because of over loans and credit card bills not being paid off. Oh and another thing, the fact that those who pay off those credit card bills with out having to make a minimun payment are not going to get as big of a loan as someone with just "okay" credit who already owes money, what is that kind of system? but anyway I digress
Well if people are going to use this money to pay off existing debt that they are carrying, perhaps the government can learn something from them. Tax cuts are great, nobody likes to complain about lower taxes, but if that isn't offset by decreased spending or debt reduction, then it's just piling on to the debt and passing it along for the next guy. Kind of like this bill. Not that I'm sending the money back.
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