Do Your Part...Spend!
It appears that some form of "tax rebate" will be in the works for us this year as part of President Bush's economic stimulus plan.
I have little background in economics, but it seems to me that giving money directly to people just isn't enough to change a macroeconomic environment brought about by years of senseless housing prices, lending irresponsibility, and irrational spending. As a result, a family who bought into the golden riches of million dollar homes are suffering from the weight of an adjusting mortgage now. It also means that $1,600 may only cover a housing payment.
Years of such reckless abandon in the housing markets cannot be corrected though what amounts to a 10% coupon on this year's mortgage payments.
Markets must correct. We have to pay the piper, as it were. Can $1,600 per family shift the direction of the economy? Soften the blow? I don't know. I will say it will be nice to see $1,600 of my money again and it is our duty to see that the money will be put into the economy; rather than salting it away for a rainy day (because I do have money set aside). I will do my best to spend this $1,600. Not a tough task, for I am an American.
Congressional aides said the White House plan is looking at rebates of up to $800 for individuals and $1,600 for married couples...
I have little background in economics, but it seems to me that giving money directly to people just isn't enough to change a macroeconomic environment brought about by years of senseless housing prices, lending irresponsibility, and irrational spending. As a result, a family who bought into the golden riches of million dollar homes are suffering from the weight of an adjusting mortgage now. It also means that $1,600 may only cover a housing payment.
Years of such reckless abandon in the housing markets cannot be corrected though what amounts to a 10% coupon on this year's mortgage payments.
Markets must correct. We have to pay the piper, as it were. Can $1,600 per family shift the direction of the economy? Soften the blow? I don't know. I will say it will be nice to see $1,600 of my money again and it is our duty to see that the money will be put into the economy; rather than salting it away for a rainy day (because I do have money set aside). I will do my best to spend this $1,600. Not a tough task, for I am an American.
Powered by ScribeFire.
No comments:
Post a Comment