Comments on: Economic Stimulus Not as Stimulating as Hoped

By: Greta

Greta — Tue, 03 Jun 2008 17:29:34 +0000

It’s too early to say whether or not the stimulus package was successful in bolstering the economy. One thing that I’m sure it did bolster is consumer confidence. I took my stimulus check and paid off a credit card. Good for me. Now instead of worrying about that credit card next month, I can maybe get my nails done. Frivolous spending because I feel good about it.

By: Blackneto

Blackneto — Mon, 02 Jun 2008 21:53:31 +0000

I used half of it to pay of my last CC bill and the other half we spent on various things. A patio door was a big bit of it. I was going to save it, But I have a regular savings schedule so this will just make it easier. Blacknetos last blog post..SEB: reducing costs

By: Erin

Erin — Mon, 02 Jun 2008 17:49:20 +0000

True, very true Randall.
I think what bothers me most about the stimulus package is that the govt. had to borrow money from China in order to pay for it.
I heard rumors of a 2nd stimulus package and honestly I hope that never passes.

Erins last blog post..Help the Frugal Failure (Pretty Please with a Cherry on Top?)

By: Randall

Randall — Mon, 02 Jun 2008 15:08:01 +0000

@Erin, I don’t blame Pres. Bush for it either (there’s LOTS of other things to blame him for) but a one-time $600/person isn’t enough to change anyone’s life significantly. Pork spending is just what it is, no matter what bill is passing through congress. Politics as usual.

@Chris, Couldn’t agree more. It’s good for the American people to save and get rid of debt, but not so good for the economy that was hoping for a ’shot-in-the-arm’ from the extra money. It might still help, but current indicators are not showing massive in-fluxes of cash into the consumer product sector. Good for savers/debt-eliminators, status quo for the economy.

By: Chris Eaker

Chris Eaker — Mon, 02 Jun 2008 14:55:42 +0000

Some people are really bemoaning the fact that people aren’t actually spending the money from the stimulus package. They are worried since people are saving it or paying off debts. If you took the time to think about what is actually happening, you would see that it’s not so bad after all. The stimulus plan was $168 billion. Estimates I’ve heard say that greater than 1/2 the people are using it to pay down debt or saving it. Let’s say 55% do that, and half pay down debt and half save it. Ok, 55% of $168 billion is $92.4 billion and half of that is $46.2 billion. That means there is $46.2 billion less debt now, and $46.2 billion more savings. This country NEEDS a higher savings rate and a lower debt load. I think anyone can see this is not actually a bad thing that is happening. Now, I understand it wasn’t what they intended it to be used for, but we Americans will use it for what we think is best, and this time, we think it’s best to save or pay off debt.