Tax Rebate deal reached

Darla said:
Why don’t you give me a break SF…you must understand that the concept behind this has nothing to do with need, and everything to do with boosting consumer spending, the bedrock of our economy now.

Those are the people who will spend it immediately, because they have nothing. Those are people who couldn’t afford to buy their kids Christmas gifts, and they don’t have video games and ipods, but they get this if they actually have their rent made that month, they go out and get their kid a game.

Of course, we can’t afford it and it’s not a solution it’s a band-aid. I’d put the money into job creations, high tech, preferably green technology and energy. Create good paying jobs, and that boosts the tax base and long term spending. It’s an actual investment that will realize returns…this is a botox shot. It ain’t gonna last and you still have those wrinkles.
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good post darla, that pretty much sums it up. Our gummit does not have the balls to provide a long term soloution.
 
Darla said:
Why don’t you give me a break SF…you must understand that the concept behind this has nothing to do with need, and everything to do with boosting consumer spending, the bedrock of our economy now.

Those are the people who will spend it immediately, because they have nothing. Those are people who couldn’t afford to buy their kids Christmas gifts, and they don’t have video games and ipods, but they get this if they actually have their rent made that month, they go out and get their kid a game.

Of course, we can’t afford it and it’s not a solution it’s a band-aid. I’d put the money into job creations, high tech, preferably green technology and energy. Create good paying jobs, and that boosts the tax base and long term spending. It’s an actual investment that will realize returns…this is a botox shot. It ain’t gonna last and you still have those wrinkles.
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Touche'
 
tinfoil said:
How would not spending by the government increase production? What exactly are you refering to here?
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Because markets are more efficient than the government. Putting the money back in the market would increase efficiancy which increases production.

Look at the % of government expenses vs % of the government GDP.
 
Obfuscate said:
I support niether they are both bad long term and are just political solutions not real ones. Giving money to individuals does nothing but create debt which in the long run makes it worse for individuals. I don't support a bailout because in the long run it becomes a moral hazerd and it will delay the negatives but if your looking at the short term it would at least get at the real problem. Again both are bad ideas, cut spending and let the market work its way to equialibrium.
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I heard you the first time but you DID say that you thought one was better than the other and well, like the Iraq war and on Bush's leadership abilities, your wrong in this case too.
 
Darla said:
Why don’t you give me a break SF…you must understand that the concept behind this has nothing to do with need, and everything to do with boosting consumer spending, the bedrock of our economy now.

Those are the people who will spend it immediately, because they have nothing. Those are people who couldn’t afford to buy their kids Christmas gifts, and they don’t have video games and ipods, but they get this if they actually have their rent made that month, they go out and get their kid a game.

Of course, we can’t afford it and it’s not a solution it’s a band-aid. I’d put the money into job creations, high tech, preferably green technology and energy. Create good paying jobs, and that boosts the tax base and long term spending. It’s an actual investment that will realize returns…this is a botox shot. It ain’t gonna last and you still have those wrinkles.
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The rub Darla is that it is a redistribution of wealth. That and the simple fact that they are likely to spend it in the same sectors of the economy as each other. It will help in the short run for a few sectors, but it will not help the broad economy. Because the increased debt is simply going to weaken the dollar further, which will lower the purchasing power that these individuals have. A decline in the dollar also tends to lead to increases in commodities.... like grain. Which means that we will all end up paying even more for our food and it will tend to be a waste.

That said, I agree with your last paragraph.
 
Dungheap said:
Cutting spending during a period of no growth makes no sense.
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It's not a cut in spending, but a cut in GOVERNMENT spending.

Government spending tends to be wasteful because it is somebody spending other peoples money on other people. They have no reason to maximize utility.

When it is financed through government debt it means that more money is drawn to investments in unprodcutive lines (i.e., the government bonds).

Reducing government spending will reduce the deficit and free capital for productive investments.
 
damn congress to hell anyway. they have the gall to send our boys to die but will not even take political risks themselves to help our country. let alone actually put their life on the line.
 
well there are a handful of examples that will do what they believe to be right even if political suicide. That is about the only thing Ron Paul has going for him. But most of what he thinks is right scares me.
 
Obfuscate said:
Explain
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#1) Morally its a worse idea because you're giving certain private institutions public tax receipts to make up for extraordinarily and obviously bad decisions. Giving people jumbo loans for dumps and double digit growth in the real estate market was just not a sustainable business plan, yet they all did it and they all should pay. Secondly, it was the public's money to begin with.

#2) Economically its worse than giving it to the people because if you're goal is to stimulate growth, you know that the individuals that are on the receiving end are the fast spenders and will drive the markets up quickly which is allegedly what the goal is.
 
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