<p>[RealClearPolitics</a> - Articles - Stimulating Nonsense](<a href=“http://www.realclearpolitics.com/articles/2008/02/stimulating_nonsense.html]RealClearPolitics”>RealClearPolitics - Articles - Stimulating Nonsense)</p>
<p>Thoughts?</p>
<p>It’s exactly right – Macro Econ 101.</p>
<p>Arthur Laffer has an OpEd in today’s WSJ saying the exact same thing.</p>
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<p>“Ask yourself why not a $40,000 rebate per person, indexed for inflation of course, if a $600 rebate is so good.”</p>
<p>Because the size of the rebate, per family, is indexed to the discounted price of a plasma tv made in Communist China. ;)</p>
<p>^^ hahahahaha, good one mini.</p>
<p>I don’t like the stimulus plan. </p>
<p>I do find it interesting that running up budget deficits by cutting taxes for the rich is ok, but running deficits by cutting taxes for the lower and middle class isn’t ok.</p>
<p>Neither is ok.</p>
<p>Keeping them happy and busy building TV sets is the cheapest way to keep the population happy and peaceful which is good for the US.</p>
<p>Also while it may be zero sum in the long run, the idea is that in the short run it is a net gain as the repayment is deferred to better days when tax money is rolling in and everyone is doing so well they don’t care if the tax is a bit more.</p>
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<p>Yes, and that’s the problem: it’s only an “idea”, with absolutely zero basis in actual practice, either economic or real. Most people will use the $$ to pay down debt, or, for those of us with kids in college, will use it to pay our increased efc (which is calculated net of income tax). </p>
<p>btw: it might have spurned new TV purchases if the the feds waited until next Feb when the network switchover to digital occurs and many TVs will go blank.</p>
<p>I just had a funny conversation with a family member in south India. We were musing on the fact that the current Chief Minister of Tamil Nadu (think Governor) was elected on a platform of providing a color tv set for every family. He was able to deliver on it - his nephew owns the largest tv factory in India.</p>
<p>Sometimes the world seems very small.</p>
<p>Everyone says they will save it to sound smart. Most won’t. What they say and do are often different things. I also doubt they will count that rebate check as income or anything else impacting fin aid for college. It won’t show up anywhere on your return next year.</p>
<p>Someone had suggested a great way to make sure that the rebates actually result in new consumer spending in a short amount of time. The strategy would be to issue not a check, but a “gift card” that can be used like a credit card but where the balance reverts to zero if it is not spent by a certain deadline. </p>
<p>This would prevent people from doing unpatriotic things like a) paying bills or b) saving the money.</p>
<p>As long as the funds end up with our owners in China or Saudi Arabia, it is a success.</p>
<p>barrons:</p>
<p>have you seen any reports from an economist that says the stimulus package will do anything?</p>
<p>Yes, and the final package placed more $$$ into the lower income sectors so it fixed that criticism. Is it sliced bread-no, nothing is. It’s a small tool like spraying a little gas into a bulky carb to start a car.</p>
<p><a href=“Economists Debate the Quickest Cure - The New York Times”>Economists Debate the Quickest Cure - The New York Times;
<p>I heard on NPR an economist say that the stimulus package is analogous to taking a bucket of water from the deep end of a swimming pool and dumping it into the shallow end.</p>
<p>Unfortunately, since the income requirements go off 2007 filings, I don’t qualify for this “manna from heaven”. My decision to fund a Roth 401(k) has “cost” me ~$600. :rolleyes:</p>
<p>We figure with our AGI and the fact that our college “children” don’t count as children…we’ll be lucky to get $50 in this rebate. Please help me decide where I should spend this to rejuvenate the economy:)</p>
<p>^ Maybe you could get a good deal on some collateralized debt obligations…:rolleyes:</p>
<p>Downpayment on the tv? Actually, I have a 19" inch Konka made in Communist China that cost us only $59.95, and it works GREAT! (nothing worth watching, but that’s another issue entirely)</p>
<p>Maybe we’ll go out for pizza…all four of us. Really…does the government really think giving a number of folks (like us) $50 or so is any kind of stimulus to spend? Like I said…ridiculous.</p>
<p>I suppose I should feel good that our AGI is that amount…but about $70,000 of that is going to college expenses for two kids…ah yes…that “free pizza” courtesy of the IRS sounds great.</p>
<p>^ Actually, even though it is a trivial amount, the pizza idea is good. Because the money will be used to support local businesses vs. foreign factories.</p>
<p>Ruin your health. Good for health care industry. You could eat the pizza while watching your Konka. ;)</p>