Possum

What do you think? Kind of smells like crap to me (not that I would mind the check in June. Can you say gas for the boat?) I fail to see how this will "help" the economy. It is a governmental placation, attempting to distract the masses of sheep in our country today. Since most of our country's optional spend, that isn't necessity, goes towards imported products (whether we want it to or not in many cases), how will this truly boost anything?
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The below is quoted from a CNN article, today.

WASHINGTON (CNN) -- U.S. taxpayers would get checks of several hundred dollars from the federal government under a plan to stimulate the economy, congressional and Bush administration officials said Thursday.

"Tens of millions Americans will have a check in the mail," House Speaker Nancy Pelosi, D-California, said at a Capitol Hill news conference. "It is there to strengthen the middle class, to create jobs and to turn this economy around."


House Minority Leader John Boehner, R-Ohio, said, "I'm looking for quick action in the House. I hope that the Senate will follow quickly so that we can put this money in the hands of middle-income Americans as soon as possible."
Watch what the stimulus package means »

Speaking a few minutes later at the White House, President Bush said the package will "boost our economy and encourage job creation."

Watch Bush praise the plan »

Sources on Capitol Hill and at the Treasury Department said the plan would send checks of $600 to individuals and $1,200 to couples who paid income tax and who filed jointly.


People who did not pay federal income taxes but who had earned income of more than $3,000 would get checks of $300 per individual or $600 per couple.


A Democratic aide and Republican aide said there will be an additional amount per child, which could be in the neighborhood of $300.
Those who earn up to $75,000 individually or up to $150,000 as a couple will be eligible for the payments, said Republican and Democratic sources familiar with the tentative deal.

Pelosi said as many as 116 million American families will get a rebate check.
Checks could be in taxpayer mailboxes by June, according to an Associated Press report.


The agreement includes a robust package of business incentives and help for homeowners facing possible mortgage foreclosures.


The Treasury Department still must analyze the numbers to determine the price tag of the stimulus package, sources said.
To get to the agreement, Democrats dropped calls for increases in food stamps and an extension of unemployment compensation. Republicans agreed to allow people who pay Social Security taxes but not income taxes to get the checks, sources said.


"This package has the right set of policies and is the right size," Bush said Thursday. "The incentives in this package will lead to higher consumer spending and increased business investment this year."
He added, "This package recognizes that lowering taxes is a powerful and efficient way to help consumers and businesses."


The stimulus package may face resistance from fiscal conservatives in both parties over worries that it would increase the federal debt. Auditors report that the federal deficit -- the difference between what the government takes in and what it spends -- is increasing.


The nonpartisan Congressional Budget Office estimated Wednesday the deficit would jump to $250 billion, mainly because of a weakening economy. That estimate does not include any additional spending that would be part of a stimulus package.


The proposal is intended to address economic worries stemming from a worldwide credit crunch created by the mortgage crisis and plunging stock markets. The president proposed the package last week.

Watch a debate on whether the U.S. is heading into a recession »


Officials in both parties credited Paulson, the former Goldman Sachs executive known for a shrewd grasp of the markets, with pushing the package aggressively.

"He's been on the phone with practically every member of Congress -- some of them a few times," one Senate Republican aide said. "He's not fooling around."

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JackC

We are in agreement. I'm somewhat educated but not an economic expert. Since the 70s I've watched the blue collar jobs in CT, disappear (in the big picture they went to China, Mexico, etc.) Neither party thought this was a concern since the jobs where "low paying" - the CNN analysis is the first time I actually saw something in the popular media reflect my gut instincts.

I believe tax incentives to corporate america even encouraged this behavior.

Now that we built up China and India with our "business policies" they are using energy like the western world and the price goes up accordingly. Seems like both parties pandered to the the lobby to drive up corporate profits at the expense of the COUNTRY.

Total lack of leadership at the expense of short term financial gains.

Hopefully, we will see some leadership happen in the US.

In CT, the legislature has not grasped the fact that since we have the highest energy prizes in the US, the middle class is being eliminated. I would like to see an explanation of WHY and what they are going to do to fix it (obviously nothing).

I'll take my little check and put it against energy expenses.

Possum

Agree wholly. Haven't figured out the "blind eye" approach yet, and don't think I ever will. It's truly a national travesty, however, CT is being spanked royally with our ridiculous cost of living. Yeah, inflation is quoted nationally as being near 1%. Remember, that assessment does NOT include Gas, Oil, Energy, or Food.

I am disgusted with the complete disregard for the way of life this country was founded on. Now it's greedy money hogs, and the sub-middle class. CT is a prime example of what is going to be national epidemic at this rate.

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74Formula233

Brad, you should see what RI is up against...........if you think CT is bad LOL.........

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Special K

although we know the said rebates are pure pandering to the masses, i will use mine happily to help fund my ridiculous addiction to mother ocean.

we could opt to return it, but where would the funds go??

some foreign country no doubt.

cheers! mk

AlloyToy

True sense of false hope in "jump starting" the economy. The majority I talk to plan on paying down debt, or salting it away for a rainy day.

One gentleman I know plans on buy scratch tickets with it in hopes of changing his bottom line. Another plans on heading to see the Indians in Ledyard

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"First The Bite Then The Fight"

plugmeister

The tax rebates are pure Keynesian Expansionary Fiscal policy straight out of Econ 101. See the "80's Regan boom." Cooperating is the Fed with expansionary monetary policy, cutting the Discount Rate and the Fed Funds rate, injecting liquidity into the banking system and combatting the credit crunch. Might work, but there are so many storm clouds. The Bush federal deficit of record proportions, the enormous trade deficit (see China), the devalued dollar, the real estate bubble pop, the subprime mortgage disaster---. Generally, the budget deficit will equal the trade deficit. The larger they are, the greater inflation will be and the higher interest rates will go, necessitating contractionary (recessionary) policies. Unemployment will soar. "We have met the enemy, and he is us." The Dumbya era has been one of the most disastrously incompetent in US History. We have had a moron for chief exec for 8 years, exactly as I predicted in 2000. "The party of real American values." Sure. Time to pay the piper. Declining dollar, huge budget and trade deficits, recession, bubble bursts, hedge fund disasters, record energy prices, abandonment of environmental protection, loss of esteem abroad, an intractable and costly war for reasons now known to be lies, corruption, incompetence ("Brownie yer doin a great job.", "Mission Accomplished." etc)---sure to find a place in the annals of Republican disasters with Harding, Coolidge and Hoover. Move over guys, the Dumbster is now # I. Who did you vote for in '00 and '04?

AlloyToy

The bad news is this is also a snowball effect from previous administrations, like all the worthless dot com companies that took people for a ride.

The banks operated at a risk, and a risk it was......then they deserve the hit. In the mean time a lot , I mean a lot made a lot of money fast in this last boom.......lawyers, brokers, appraisers, CEO's........

The good news is the next president will make it all better

Let's look at welfare if you want to see pure ignorance on the part of both parties........no we better not that means votes

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"First The Bite Then The Fight"

Special K

hey now, i feel like i'm listening to sound bite re-runs from the nightly news from one of these posts....i am no economist but my last trip to the bank showed interest rates falling! (contrary to a previous prediction).

since i am fortunate enough to scrape out a living without governmental hand-outs i intend to capitalize on this opportunity. i may re-finance what debt i do have at the lowest rates available in years. (high rates & inflationary memories of the carter years still scare me). i may take some spending cash & do a little economy stimulation of my own.???

with a fixed rate that i can live with i should be able to survive the salvation of the next administration....my $.02
"i didnt inhale"

120 days 'till launch &

Philly Doug

I agree with two points: 1) G.W. has not been a stellar President, 2) the budget is killing us. It is killing us because of the massive social programs our democratic/socialist friends have engineered into our government. Their size dwarfs every other government program. Worst President ever=F.D.R. (his socialist engineering friends didn't help either). His Court Packing Plan destroyed the very fabric of our Constitution.