Why the tax rebates are a bunch of hooey. From today’s local rag:
So along comes the president and Congress with an economic stimulus check for you. What the politicians, economists and Wall Street want you to do is to run to Best Buy (better yet, drive your Hummer there) and buy that plasma TV. Or hit the mall to buy those spring fashions at Macy’s.
By doing that, you’ll be priming the U.S. economy, helping it pull up from the slide that’s been occurring.
In other words, they don’t think you should use that check to pay down your debt, pay off a credit card, pay a little extra on your mortgage, or pay off your car loan.
Or worse, to start saving. Americans have become lousy savers. Would the country collapse if enough folks starting shoveling that government gift coming sometime in May into a money market, CD, or a retirement account? Even trickier, what if you were to take that $300, $600 or $1,200 that’s promised and had your employer shift that amount into your 401(k) account, boosting your savings for retirement.
Why we’d be acting in our own self-interest rather than for the greater good.
As was pointed out here, the Fed has already provided stimulus by reducing interest rates 1.25%. By the time the rebate checks arrive, the Fed’s stimulus will have succeeded or failed; the deed will have been done, the “rebates” will be irrelevant.
Me, I’m using mine, if I get one, to help defray my medical insurance premiums (yeah, I finally got medical insurance. $3000.00 deductible, almost $400 a month premium, made possible by the tremendous buying power of AARP–like I said, I’m old. Unless my son or I drive into a tree or get really really sick, we’ll never see a dime of coverage).
ASZ takes it to reductio ad absurdum.
Well, not really ad absurdum. In the Bushie world, nothing is absurd any more.