Most people I know will just use it to pay the rent that's a month behind as a result of all their money is going in the gas tank. I suppose the rebate might help somebody keep their home from foreclosure for that much longer. But once the money is gone, the economy is right back where it started.
The people who aren't hurting from the money crunch (are there any of those?) will perhaps tuck the money away for vacation-time. Those who are feeling the squeeze will buy groceries and gas. How long is that little "boost" to the economy going to last? How much difference can it make?
Just my two cents worth.
I'm editing in one of my comments on this entry, as it's very enlightening, at least to me:
Comment from pudge450 |
I think the idea of stimulating the economy
with this tax rebate is more profound than it appears on the surface.
Once a dollar enters the economy, it statistically "turns over" 5
times ( with a bit of deminished value with each turnover). Net effect
of one dollar is about $1.66 in the end. So, if you and your husband
receive the proposed rebate of $1600 for a married couple, your net
effect on the economy is about $2656.00 in the end. Multiply that
times the billions of dollars and it is a larger effect than expected.
Even if someone pays his past due rent, the money has been put into
play. And don't forget, some of that goes back to state and local
governments as sales tax. But, of course -- some people will put it in
the bank, and then...... well little effect."
12 comments:
You said it perfectly! My husband realized that if he got rid of his gas guzzling van he would have enough for the car payment on a new car with the gas money he would be saving. Not saying we will do that but it's an option.
Traci
http://journals.aol.com/deshelestraci/MylifeasatransplantedYankee/
I agree...I can't see where it will help at all....but then I don't know what will.
I think the idea of stimulating the economy with this tax rebate is more profound than it appears on the surface. Once a dollar enters the economy, it statistically "turns over" 5 times ( with a bit of deminished value with each turnover). Net effect of one dollar is about $1.66 in the end. So, if you and your husband receive the proposed rebate of $1600 for a married couple, your net effect on the economy is about $2656.00 in the end. Multiply that times the billions of dollars and it is a larger effect than expected. Even if someone pays his past due rent, the money has been put into play. And don't forget, some of that goes back to state and local governments as sales tax. But, of course -- some people will put it in the bank, and then...... well little effect.
Hey! Maybe I can go to Las Vegas in February after all and do my patriotic duty. Unfortunately, I don't gamble so it won't get spent that way!
xoxo
I agree with you!! $500 isn't going to make much of a dent.
Pam
I think it would be better to figure out how to lower the price of gas....:>(
Sandra
I'll be glad to get mine!
Mosie...hubby and I were having this same conversation last night....we will take the rebate...happily...but it isn't going to do any good....like trying to stop a flood with a small sponge...LOL...and sorry about Cliff's aunt...but so happy he had some memory time with her....Hugs...Ora
Yes I agree with you...and I know that comment from Pudge450 looks/sounds good and we want to believe that but I don't believe that is a fact. I think your closer to hitting the nail on the head. It's not going to effect us that much at all.
I keep waffling on this. I feel like I'd love to have the money back to be able to use ... however. Then I think, well, yeah, but next year they'll want the money back. But I do believe that the rebate does have the profound effect on the economy because of the vast numbers of rebates.
I don't know whether it will help or do nothing, but I guess I'll find a use for it if we get it. I hope that it does create a ripple effect, though.
Lori
We always get back a good chunk of change, but it has always gone to things we have been wanting or needing. Last year was the fence. This year the house needs to be painted. Some we will keep back for a rainy day so to speak.
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