Repeating ad nauseam that the $150 billion economic stimulus package was aimed at "middle income" Americans, Congress and Secretary Paulson announced their proposed stimulus package this morning.
Pelosi said it was created to "strengthen the middle class, create jobs, and turn the economy around." To do this, Pelosi said, "we need to get the money to those who will spend it immediately." That's what concerns me.
They've decided they're cutting checks, willing to further disrupt our wildly unbalanced budget, for what seems like a band-aid, and a teeny-tiny one at that. Though no official promises have been made yet, the amounts of dough distributed are said to be between $300 and $600 for individual filers and up $1600 for families. Granted, it's more than $1.95, but they're gambling on human nature. To find out how, read more.
They're gambling that if an American knows he's getting $600 bucks in the mail, he'll probably go out today and put a $1000 TV on a credit card, promising that he'll use his rebate to pay it down but probably adding to his mounting personal debt that will make it all the more disastrous if he loses his job. They're gambling that a family won't snatch that thousand bucks and use it to pay a portion of their precarious mortgage, only to be in the exact same state in a month. But is the gamble worth it?
Representative Jeb Hensarling of Texas said, “if you’re going to have an economic stimulus package, it ought to contain some economic stimulus.” So, it seems like a huge national price to pay for relatively meaningless personal gain. Is the rebate worth it to you? Will Congress's gamble work? That is to say, have you already spent yours and then some?