The federal government’s much talked about economic stimulus package will be distributed to most of us this week, but I have serious doubts about it doing very much to head off a recession that many of us here in middle America feel is already here.
While on the surface it appears Uncle Sam is being generous, giving all of us a little reward for being honest taxpayers, these rebate checks are nothing more than an advance on next year’s tax refund, and I for one would have liked to decide for myself whether or not I wanted such an advance.
Washington is hoping Americans will take their rebate checks and with them give the nation’s economy a shot in the arm. Maybe I’m wrong, but I predict most of this money’s destination will be Wall Street, not Main Street; corporations, not mom and pop hardware and clothing stores, will be the primary beneficiaries of this stimulus package. The rich will just get richer, and in a few months the bottom lines of both the nation and average family will be right back to where they are now.
Take my family for example.
After purchasing a new fishing pole at Jerry’s (some tackle, too), paying a bill or three and buying a few pieces of spring clothing for the baby, the lion’s share of our family’s rebate check has been squirrled away for a rainy day.
I speculate most Americans will follow similar suit and find themselves buying a few creature comforts not ordinarily included in May budgets but directing most of their rebate to debt and savings accounts.
No, an advance on my 2009 tax refund isn’t what I needed at all, and forcing Americans to take them won’t save the economy.
If President Bush is serious about short- circuiting a recession he should instead be looking to help family’s like mine break free of financial albatrosses like student loans and credit card debt.
Sure, $1,500 is nice, but it’s not enough to have any kind of lasting economic effect on the typical American family. If the government wants to avoid a recession our esteemed political leaders should instead be talking about cutting interest rates on federally-issued student loans, providing additional tax breaks for small businesses and infusing local governments with cash in order to reduce property taxes.
Other ideas:
- providing a grace period to those unable to pay their mortgages so they can catch their breath
- forgiving in whole or part the enormous medical bills incurred by those who get sick or hurt while uninsured
- Ramping down expensive military operations overseas
I think we are all starting to realize our economy is heading south fast, and I just feel like this economic stimulus package is a an economic Hail Mary.
No, much like a caffeine-laden energy drink, this week’s rebate checks will pep a weary economy up for a little while, but in the end we’ll be even more tired
than before.
