Bread and circuses
We have physicians, preachers, roofers, and teachers on our mailing list, but I don't recall offhand if we have any economists. We might well. If so, perhaps one of them can chime in regarding the so-called "stimulus package." (And thanks in advance, Keekley, for the inevitable reply about stimulating your package.)It seems to this layperson that the current "economic crisis" is largely related to three phenomena:
- The high price of energy is making everything a little more expensive.
- People are carrying too much personal debt and thus either spending less or putting more money toward servicing that debt.
- Homeowners can't continue borrowing against the equity in their homes, either because they are maxed out or because lenders are tightening up.
If at least some of the "crisis" is due to consumers being over-extended, is it reasonable to expect some of the rebate money will be spent merely on paying down debt, thus providing no stimulus? If so, how much?
Won't much of the money that is spent go for clothes, electronics, and other goods made abroad, largely stimulating other countries' economies more than our own?
Since the rebates are coming with implicit directions to go forth and spend, wouldn't it be even more effective to give the money directly to Wal-Mart, Home Depot, Chili's, et al.? Why or why not?
Don't get me wrong. When it comes to game shows and lottery payouts I'm definitely an I'll-take-the-cash kind of guy. But I resent the implication that comes with this proposed rebate, namely that I, we, "consumers" are somehow partly to blame for the current softening in the economy because we haven't been spending enough. And that we are somehow too stupid to see the rebate for the shameless, short-term political ploy that it is.
On to important issues: Please let me know if you will or will not be playing hoops at St. John's this week. We tip off at 8:00 a.m. tomorrow, as usual.
posted by SPY at 11:34 AM
5 Comments:
Why shouldn't we support this stimulus package (or "fiscal lunacy"). The national debt is only $9,194,797,008,550 (or $30,245 per US citizen). Handing out an extra $600 will only add less than an extra 2% to that per citizen amount. That is reasonable... isn't it. Oops, I just rechecked my numbers -- the debt is now at $9,194,890,356,924 (or $30,246 per person).... Oops, I apologize. I just rechecked again. The new numbers are $9,194,986,226,059 (or $30,247 per person).... I give up.
12:48 PM
Okay, be cynical. But the stimulus package actually gets me a little teary eyed. It makes me well up with patriotism as we all did when we heard President Bush's post 9/11 admonition to "shop! shop! shop!"
1:40 PM
Steve-
As you may be aware I work for a company called Dow Jones and one of the many things we are responsible for is publishing a little "news" paper called the Wall Street Journal. As a middle manager in this firm, I have been to many training seminars about the normal stuff: filling out forms properly, how to submit a budget, how to write a performance review. But unlike other similar firms, we also get trained on the point of Capitalism.
It turns out that the whole point of the markets, taxes, working for a living, etc is so that one might be able to have sex with a hot French woman on a rotating bed covered with money.
The stimulus package (not to get all Keekley on you) should help every citizen get a little closer to that goal. For some of us (I'm not saying, I'm just saying) it might even be the down payment on the bed or the divorce papers...
It turns out, you see, that it isn't as complicated as you whiny liberals make it out to be.
9:08 PM
when did paying down debt and trimming government spending become liberal ideas?
it sounds like only 19% of those getting money (not everyone is getting money, and an argument can be made that it is going to the wrong constituents if this study is right) are actually using it to pay down their own debts. so, i guess the constituents are smarter than their representatives, but unfortunately, there won't be a new rotating bed at my house (or the french hottie that would come with it).
8:50 AM
Come on Annon--if you want the bed bad enough you can flipping get it done. That sounds like the normal liberal whine--I didn't get the money and therefore I need some sort of government rotating bed handout. (Plus: I'm not liberal! Stop calling me that!)
Not that I'm opposed to a department of hot french babes. I'm just saying its a bit fey to claim that you have too much money for government largess and therefore you aren't going to be ripping the French Nanny costume off a supple twenty year old without a government hand out.
That's why we need to repeal the capital gains tax, death tax, etc. To free up some capital for your capital if you know what I mean...
-dj
10:12 PM
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