The local furniture stores and car dealerships here at the Crossroads of Opportunity have signs up talking about spending your tax rebate here. Right. Good luck with that. I'll be able to buy some tire valve covers.
There has been some back and forth at Defeatist central about the Stimulus package. I tend to argue the basic Keynesian approach, giving money to people to spend will do more for the economy than giving it to them to save in terms of stimulus. Frankly, if they sent me an $800 check, I'd probably bank it. But, give me more in my check, and it'll get spent, or pay down bills which in some respects is the same thing...as you make payments on credit used, more credit becomes available to use going forward by yourself or others who now can access that pool of available capital looking for a home. But, I don't think giving a family $65 extra a month at the high end is going to really help a fuck of a lot...in fact, given that it's $30 venti coffees at Starbucks or one decent night out, won't do a thing.
So when should most people hope to start seeing the benefits of tax cuts in it?By April 1, according to the president."Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans," Obama said Saturday in his weekly radio and Internet address.The president said his signature two-year "Making Work Pay" tax break will affect 95 percent of working families, and, in six weeks' time, a typical family will start taking home at least $65 more every month.Taxpayers won't get a separate check mailed to them like many did with last year's one-time payment designed by the Bush administration to help boost the economy.
Now a couple of my brothers have been lusting after their "bonus" check. I think AGI as the youngest of the Defeatists was hoping for enough for pony, El S was hoping for a new bicycle pump and Mr Fun was seeking enough to get the complete Slackers Office Disaster Cookbook Collection. Probably not going to get the pony, bro... Gotta save for a few weeks to get the bicycle pump, brother; probably can get the collection through the Fuck the Boss Book of the Month Club, but it won't pay for the supplies, guy. As for Holier, he can probably get a new begging bowl and sackcloth ensemble, and Capt C can get his new set of red/black double penpoint anarchist grading pencils for the various versions of "How I slept through Political Philosophy this quarter..." he'll get to grade periodically.
You know, I agree that this is the right concept. However, the execution is really flawed...my barista would thank Obama, I guess, if my daily Starbucks wasn't prepared by a slave to AAFEES who doesn't get tips. Get enough of a tax going back to people who will spend to make a difference. This is like saying that some chewing gum can solve the crack in the dam or at least it will help...shit. Buy cooper in huge quantities from Arizona mines with this and pile it up some goddamn place. That would do more. Far more. However, this is silly...and, the Hobbitacracy is beginning to show that they, at least, are nonpartisan.
Or maybe it's the historical economists like Benny the Bernanke...an extra $13 in 1933 would have been a helluva deal. Or, maybe this is what happens when you pander and don't have the balls to force people to do things that make sense. At my tax rate, I expect about an extra $30 a month. Since I just ditched Verizon, I guess that savings combined with this extra $30 will let me...well, pay down a bill or two marginally faster. Or, get a PX sandwich occasionally with my Pikes Place...
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