What Can Be Done To Stimulate The Economy?
Written by: Tom Sawyer
I have been observing our current economic situation and as a result, haven’t been updating the site as I normally would. Thank you to Kim for holding it down – she proves over and over again why she is a keeper!
Stimulus Check Part 2?
How do we go about stimulating the economy when the experts are saying things are going to get (much) worse before they get better? If President Obama makes way for us to get another stimulus check, will that really be enough? I don’t think so.
I’ve read a lot on the Internet about what people would do with a stimulus check and the majority seemed to say they would use it to pay bills (i.e. credit card debt, etc.). It’s unfortunate that paying off credit card debt would only help credit card companies and banks. Didn’t the financial institutions already get $350 billion? I know I’m over simplifying things – done on purpose – but it seems like the end result would be putting the money in the hands of the same people who have already received bailout money. Other people said they would go out and spend the money because that is what would really jump-start the economy and that is what the money was meant for. This seems to make more sense to me, but there could be a wrinkle to this. What if people purchased items made outside of the U.S. (i.e. Japan, China, India, etc.)? What type of effect would that have on our economy? Finally, some people said they would save the money. I really don’t see how this could help the economy since the money would just sit and probably not gain very much interest. Just so you know, this topic is not my area of expertise, so I welcome any and all corrections.
I wonder if fear is a major role in our current economic situation? I read that layoffs in Alabama caused others to essentially shut down purchasing because they were fearful of being laid off themselves. If individuals stop spending because they are afraid, the situation may actually get worse.
Finding the Perfect Balance
There is a fine line between spending less due to the economy and spending enough to help the economy rebound. This would apply to everything from candy bars to houses. If we spend on only the necessities, we may allow businesses to do more with less or less with less. Yes, we should be smarter about how we spend our money, but the bottom line is — we need to spend if we expect the economy to come back.
Our government could help by forcing some industries to reasonably price their products. For instance, how about if the oil companies made profits ($ billions), but not record profits? What if places like Washington, DC didn’t have townhouses starting in the “Low $1 millions?” Do you know any construction workers or mid-level employees who are making a lot more money as a result of the high prices we paid over the last five years or so?
Relief, or an end to price gauging, in some key areas would allow us to start spending in areas that need it more. I know we live in a society where there’s no limit as to how much a person can earn, but maybe striking a balance between reasonable prices and profit make more sense for the long haul. Maybe some of those people should play SimCity to realize the benefits of making less money over the long haul instead of draining the well dry right now.
On a side note, when one of the oil company CEOs retired a while ago, part of his retirement package – worth $400 million – was a security detail. Hmm, now why would he need security?
Tags: Another stimulus check, jump-starting the economy, paying off credit debt, stimulate the economy
January 27th, 2009 at 12:37 am
[...] Cool Tips and Information wrote an interesting post today onHere’s a quick excerptWritten by: Tom Sawyer (Who am I?) I have been observing our current economic situation and as a result, haven’t been updating the site as I normally would. Thank you to Kim for holding it down – she proves over and over again why she is a keeper!Stimulus Check Part 2?How do we go about stimulating the economy when the experts are saying things are going to get (much) worse before they get better? If President Obama makes way for us to get another stimulus check, will that really be enough? [...]
January 27th, 2009 at 9:04 am
Welcome back!
I always enjoy your insight on things.
I don’t think another Stimulus check is the answer but I’m not going to say no if they want to send me a check. Last time we got ours it was just enough to cover what we had to pay in taxes so it wasn’t like we really had any extra money coming in. I’m sure we’ll do what we do when we usually have some extra cash coming in. We split it into thirds, a third for bills, third to save, a third to spend. It’s the easiest way to do it in our eyes. Some people might think that’s a bit weird but hey it’s not yours so don’t worry about it!
I’m just wondering when the gas prices are going to go up, not going to be happy about that.
January 28th, 2009 at 8:43 am
I also don’t think another stimulus check is the answer, but I think Washington is all out of ideas on how to stimulte the economy. If we get a check, our family would spend it because I understand the importance of spending:–)
Seriously though, people are fearful so they may not spend – they may save for more rainy days, which defeats the whole purpose of a stimulus check. Washington (more specifically, President Obama and Democrats) will have to think MORE outside of the typical political box in order to jump start our economy.
January 28th, 2009 at 9:37 am
They should use their stimulus check to buy carpet!!! (We own a floor covering store. LOL)
January 28th, 2009 at 5:46 pm
Now see Karen, that’s what I’m talking about. Thinking ouside of the box! LOL!:–)
January 29th, 2009 at 7:52 am
Disclaimer: I am not politically savvy, just trying to learn as I go! I’m really exposing my intelligence or lack of, with this question, but here we go!
I heard on the radio this morning, they voted and it is yes to step one of the stimulus program (for a lack of a better term) and the votes were like 244 democrats to 187 republicans. (those are not correct I know, but something like that). Here’s the thing, not one Republican voted yes. Aren’t republicans the ones who gave it to us last year???
If this question sounded stupid, please forgive me and pray that I become more politically savvy.
January 29th, 2009 at 7:53 am
I am going to pay bills with mine or save it! I gotta stay focused on working out my own situation and not ending up on skid row.
January 29th, 2009 at 8:40 am
Kathy, what’s extremely interesting is that last year, Democrats and Republicans voted for the stimulus package. This time around, ALL of the Republicans voted AGAINST it. What does that say to you?
January 29th, 2009 at 9:32 am
Right! And I really don’t understand it at all.
I did hear this morning also that Russ Limbaugh said he wanted Obama to fail! I started to write something about that to post. That is such an immature, Un-American, malicious, harsh, evil, and stupid thing to publicly say! He should be stripped of his microphone. Here’s the thing, if you don’t like him, ok. If you didn’t want to vote for him, ok. But he is now the President of the United States. If he fails, we all fail! Is Limbaugh so rich and powerful in his own mind that he thinks the President’s failure wouldn’t affect him? I really believe he will regret that statement. Even if it is within the privacy of his own soul, he will reap sad and sorry things for that one…
Sorry I digressed. What about that Republican vote on the stimulus package???
January 29th, 2009 at 10:07 am
I heard that a couple of days ago (about Rush Limbaugh). He also made the bold statement that President Obama is afraid of him. As if! You take men like Rush Limbaugh with a grain of salt – they are so small, they have zero effect!
The Republicans said that the stimulus package does not stimulate anything, it just does a lot of spending. So they got together and voted against it. But, according to the Republicans, that doesn’t mean they don’t like President Obama:–)
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