So the govt. wants to give me money – sure, I’ll take it. But, the one thing I can’t figure out is where they expect the money to come from and what good they actually expect it to do to the economy.
I’ve done a little reading and found out some interesting tidbits – the first is a quote from Bernanke, Head of the Federal Reserve, who said “Stimulus that comes too late will not help support economic activity in the short term, and it could be actively destabilizing”. Others have said that in order to avert a recession the stimulus must arrive before we actually start the recession. Unfortunately, we don’t know if its too late. They plan to get us the funds by May – thats almost 100 days from now. I have a feeling that this is nothing more than a political move.
No politician in their right mind would openly come out and denounce the plan because their constituents want that money. They would effectively be taking it out of their hands. Its a smart political move to fight for the money – only time will tell if its good for the economy.
The other thing I don’t understand is where the money is coming from. Last time I checked we had a Federal deficit and an unbalanced budget. Unless we found 1 trillion tons of gold under the capital building in the past few days I don’t think we’ve even begun to pay it off. The money simply isn’t there – the government needs to budget like the rest of us do. When the money runs out – you have nothing else to spend. Sure we have credit – but paying it off is a PITA – trust me, I know.
Here is a link to another editorial from a like minded person
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