Stimulus Commentary
This nation is driven by consumers and we unfortunately cannot undo ourselves of our bad spending habits. The stimulus will only end up a disaster like the last stimulus checks sent out to “fix” the economy. The majority of the American public will spend their checks on frivolous items as soon as they get them. The blame is put on our economy and what it represents; the frivolous spending habits that the credit and loan industry has made us believe in. Obama speaks about sending the American public a stimulus check of substantial proportion. The size of the stimulus checks will not matter in the end. This new stimulus check proposal will have to do a lot more than just cut out checks like the Bush Administration did. This administration will have to educate the people to save their money and decrease spending. I believe the Obama administration is definitely looking for a long term solution and not a “quick fix” like his predecessor. While I believe in change and what the Obama campaign stands for, I also believe that this stimulus check proposal will have to be more carefully strategized to have a positive effect. We must learn from our mistakes. I know that when I got my stimulus check I actually put it in my savings for worse times to come versus my friends who went on a shopping spree with it. Again, I have to emphasize the importance of teaching the consumer better spending habits, so that we do not suffer financial debt or crisis in the future.
This nation is driven by consumers and we unfortunately cannot undo ourselves of our bad spending habits. The stimulus will only end up a disaster like the last stimulus checks sent out to “fix” the economy. The majority of the American public will spend their checks on frivolous items as soon as they get them. The blame is put on our economy and what it represents; the frivolous spending habits that the credit and loan industry has made us believe in. Obama speaks about sending the American public a stimulus check of substantial proportion. The size of the stimulus checks will not matter in the end. This new stimulus check proposal will have to do a lot more than just cut out checks like the Bush Administration did. This administration will have to educate the people to save their money and decrease spending. I believe the Obama administration is definitely looking for a long term solution and not a “quick fix” like his predecessor. While I believe in change and what the Obama campaign stands for, I also believe that this stimulus check proposal will have to be more carefully strategized to have a positive effect. We must learn from our mistakes. I know that when I got my stimulus check I actually put it in my savings for worse times to come versus my friends who went on a shopping spree with it. Again, I have to emphasize the importance of teaching the consumer better spending habits, so that we do not suffer financial debt or crisis in the future.
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1 comment:
I think you are mistaken concerning the reasoning as to why the government sends out stimulus checks. You say in your post, “This administration will have to educate the people to save their money and decrease spending.” This may sound like the smart thing, but, according to House Speaker, Nancy Pelosi, it is just the opposite of what the government is hoping people will do. This quite possibly could be the reason as to why the stimulus package won’t work: Young people who have never experienced such a depressed economy, as the one we are currently experiencing, feel they are doing the smart thing, like you, by putting their stimulus check in the bank “for worse times to come”. When in fact, your “friends who went on a shopping spree” with their stimulus checks are probably the better role models in this situation. You said in your own post, “This nation is driven by consumers” of which I agree, that is most definitely correct and the fundamental reasoning behind stimulus checks being sent. It is to get the consumers to not worry about the condition of the economy and go out and buy things (I know it sounds dumb, but hang on there is a greater outcome). By giving the American people money to buy “frivolous” and/or needed products, it creates the “supply and demand” that the economy thrives off of. This creates a rippling chain effect thus providing jobs for people in order to “supply” the goods to the American people that they “demand” –in turn boosting the economy. Also included with previous stimulus checks, was incentives to businesses in the hopes that they would venture to spend money to do more projects, thus creating jobs to put more people to work who, in turn, would have money to once again buy products and services to spur the economy. This must be accompanied with tax cuts and responsible fiscal spending by government on social programs and pork barrel projects. It will take government and citizens both working together to implement a difference.
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