Congress recently approved the “economic stimulus package,” which will provide every single tax filer with adjusted gross income (AGI) of $75,000 or less with $600 and every joint filer with AGI under $150,000 with $1,200. If you have dependent children, you get an additional $300 for each dependent child.
The reason for this program is to get us to spend the funds to help “revive” the US economy. From my perspective, the long term results of this program will not revive the economy, but will serve to put our country deeper in debt.
As one pundit has stated, this should be called the China economic stimulus package. Much of the $150 Billion of additional long term debt that this “stimulus” provides will likely be purchased by the Chinese or other foreign entities. Thus, additional government resources (which come from you and me) will be required to service this debt.
As an added benefit to China, if the money received is spent at WalMart, Target or other large retailer, it will be used to purchase goods that are manufactured in China, increasing our trade deficit. Some “economic stimulus” this program turns out to be.
OK- so our elected officials are scamming us in order to “buy” more votes – what else is new? However, we can take this lemon and make it more palatable.
Here is what you might consider doing. If you have any credit card debt, use the funds that you will receive to pay it off. If you already pay off your credit card in full each month, take the money and use it to pay down some of your mortgage or put it in one of your savings accounts. In 20 years, the $1,200 will be worth over $6,000, if your investments return 8% annually.
We can never keep our elected officials from doing things harmful to our economy, but we can minimize the damage that they do. I hope you will use this “stimulus” to increase your financial abundance.
The Stimulus Scam
February 20th, 2008 at 02:16 am
February 20th, 2008 at 03:10 am 1203477035
I agree that indebting our country to "stimulate?" the economy is a poor way to buy votes.
February 20th, 2008 at 03:22 am 1203477764
February 20th, 2008 at 03:42 am 1203478937
February 20th, 2008 at 01:36 pm 1203514581
February 20th, 2008 at 02:35 pm 1203518152
February 20th, 2008 at 05:37 pm 1203529020
Everyone below the income caps that I referenced gets the same amount of money. Even people who pay no income tax will get the $600 (single) or $1,200 (joint)"refund."
I am personally opposed to government provided income redistribution. I prefer to do this through individually controlled charitable contributions.
February 21st, 2008 at 06:24 am 1203575042
and also: we had a thing like that in australia about 5 years ago, the government decided to give everyone who had children about $300 per child. i'm not knocking on how you think money should be distributed, but i have to say, it really helped our family out. my mum got $900 because of me, my little brother and my little sister. she paid our overdue school fees and next years, bought us new uniforms that fit! and spent a couple of hundred dollars on shoes and clothes that we desperately needed. i think she might have also bought some new sheets and things... anyway! my main point is, for those that are not doing well financially, and who dont squander it on useless stuff, it's much appreciated.
just another look at how money like that helps!
February 21st, 2008 at 05:16 pm 1203614180
My hope is that the more fortunate among us will find charitable organizations that support people in need and our donations will help those organizations prosper.