Are We Stimulated Yet?

OK, we now have the Economic Stimulus Package to steer us away from a recession.  However, according to President Bush, we’re not close to a recession.  We are in a “slowdown”.  A recession, you see is far worse than what we are seeing everyday on the street.  So forget what the media is telling you, we are NOT headed for, already in, looking at or otherwise engaged in a recession.  To reiterate, we are just in a slowdown.  I suppose that makes sense.  My income has indeed slowed.  I wonder if my mortgage company will accept a check every other month from me.  I’m not avoiding my payments, I’m just slowing them down.  Every other month works for me.  And my taxes.  I’m going to pay them every odd year.  I’m not reneging, I’m just slowing down my output of money.  Trickle up if you will.  But I digress.  Because just when I thought all was dark and gloomy in the financial world, Bush unleashes a Tasmanian Devil of a plan to stimulate the economy.  Tens of millions of taxpayers will receive checks ranging from a few hundred to about $1500 dollars.  Now please don’t get me wrong, I will not look a gift check in the mouth.  The premise of this tax bonus is just a little distasteful.  Knowing that 70% of our economy is derived from consumer spending, the President is counting on us to run to Best Buy and scarf a new flat-screen with the money.  He’s counting on Americans being Americans and spending what they don’t have.  Do you see where I’m going with this?  And sadly enough, he’s right.  In the short term this will provide a bit of a stim to the economy right around June or so. Right around when gas prices hit close to $4.00 / gallon in the peak of the driving season many people will spend this money on X-Box, Jimmy Buffet tickets or whatever, instead of adding to their 401k or paying some delinquent bills. 

Tagged as: Ecomomy, George Bush