Question:

Do you think government rebate checks are gimics or do you think they work to simulate the economy ?

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My thinking is ... if the government has a deficit .... how can they refund any money . And ...... why don't they just save the cost of providing refunds and just take the money off of next years taxes .....

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  1. As long as you spend a majority of your money (and most people do), it will provide simulation.

    It's a bit tricky to explain the math and reasoning behind it, but, when more people spend money, the economy grows stronger. In a nutshell: if people have confidence in the economy, and are willing to spend their money in it, then the money spent goes to businesses, which can then afford to increase production and hire more workers; those workers, in turn, spend their money at businesses, and the cycle repeats.

    So, if people have more money, and they go and spend it, it's a good thing from the standpoint of the government.

    But it's more symbolic then anything else. $600 per person is nothing...it's a drop in a multi-billion dollar bucket.  But if it gives people the confidence to spend (either right away, or in a few months after they pay off a bill or two), the effect pays for itself.

    As for the budget overspending at the federal level... the fact is, the only way to reduce that anymore is to slash a lot of programs that cost a lot of money. That would be so politically unpopular that nobody is going to throw away their entire career to balance it.


  2. gimic. if you believe anything the gov tells you, I have a few bridges for sale for ya.

  3. its really like punching in more holes into a sinking ship, the government is the sinking ship.

  4. It would stimulate the economy if used the way the government intends them to be used however, most people will use them to pay down credit card debt and or save the money and thus doesn't have the effect in which it was intended for. So the answer is Yes and No. I myself will use it for a downpayment for a full tank of gas :0)

  5. it's not going to help,but hey people will use it.

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