Doesn't the stimulus checks issued to the American people actually hurt the economy in the long run?

Question

Doesn't the stimulus checks issued to the American people actually hurt the economy in the long run?

Answer 1

Could be.  It added to our deficit which seems to have a lot to do with the value of our dollar.  I can't tell it stimulated anything.  I paid a bill with mine.

Answer 2

Yes.  The government simply printed up a bunch of checks & gave them out.  It's the same thing as printing up bank notes -- just like the government of Zimbabwe is doing.  All that happens is that the value of the existing money supply devalues by the exact amount of the newly printed up money.  The new money simply becomes another component of inflation.

Now Obama wants the Treasury to issue another $1,000 stimulus.  I think McCain ought to call for $2,000.00   Or $10,000.00!  Maybe an extra $5k if you buy a new car! When you're printing money you can print anything you want -- just like Zimbabwe.

edit.  This was NOT a pre-payment of any part of next year's refund.      It is a simple print job by the Government.

Answer 3

No, not really.  It was actually a prepayment of next year's anticipated tax refunds... we just got that money a little earlier, but we'll enjoy a smaller refund next year.  

I never quite understood the point.  I don't know anyone who stimulated the economy with their checks.  Most folks used it to pay bills, or stuck it in savings as "just in case" money.  

Answer 4

No, it was just an attempt to con the American public. This administration has made it so bad that anyone getting into office will have to raise taxes.

Answer 5

Not if the American public spends their stimulus checks on merchandise.  However, most people have spent it on debt, which won't initially help the economy, but in the long run means more mechandise can be purchased due to less debt.  So it will eventually help the economy.  I spent half of mine on debt and the other half on merchandise...ours was pretty big though because we have 4 kids.

Answer 6

Not really, you have to remember money is 'short hand' the economy is the trade of products and services, not currency.