Wednesday, May 7, 2008

Stimulus Package

What is the stimulus package going to do? Not a damn thing.

People with do one of four things with their stimulus check.

1) Spend it

2) Save it

3) Invest it

4) Pay bills with it

None of these things will actually stimulate the economy. Don't get me wrong, consumer spending will raise a little (and I mean a little) over the course of the next couple months, but this will simply be people spending their checks. Hiring will not significantly increase because most employers know that people are just spending their checks.

No serious investors will be getting stimulus checks.

Saving the checks won't stimulate anything and a few hundred (or a couple grand) isn't going to put anyone into retirement.

If the people who pay bills with them are average Americans (and we all know average American's don't make bills not pay them off) then the check will not even make a dent.

There you go. Stimulus checks = nothing!

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