Stimulus unfair.

We have all been worried about the current threat of recession here in the United States. The falling markets, worldwide as well as on wall street, along with the Ogre in the corner ( subprime mortgages) has the nation in a panic. This has prompted our government to put forth what they are calling a "Stimulus Package". The concept is to infuse money directly into the economy by giving tax rebates to the American people. The belief is that those recipients of the rebate would then spend the money on material goods and possessions thus, boosting the economy, if only short term.

Not a perfect idea, as it only addresses the immediate threat and does not look at the long term at all, but hey, it is a start. The amazing thing is that we are seeing bi-partisan activity on the proposed measure. Considering how the campaigns have been going as of late, this fact took me totally by surprise. However, after the initial flurry of activity on both sides of the aisle, the Dems in perfect form, have begun to push for amendments to the package. They are asking that the Government give rebates to non-taxpaying members of society. That's right, we are talking about the " Poor " again. The reasoning goes that the indigent populace will be most likely to immediately spend whatever money comes their way, whereas the Middle Class citizens may try to save it or put the rebate towards existing personal debt. Oooh, those evil, responsible taxpayers of the middle class really don't understand economics at all. Or do they? Ken Altschuler of WGAN Radio even went so far as to use an emotional scenario/analogy to express his support of the provision. Using an Unwed mother who can finally buy that winter coat for her child. How Touching Ken, I am totally swayed now. Maybe, if I had more sympathy, perhaps I might come to the same conclusion as you and the Liberals pushing this. I don't however, so I am stuck here forced to use logic and reason, rather than raw emotion.

First, allow me to apply logic to the idea that the Middle class recipients will save the rebate and not spend it. Yes many will put it towards existing debt, this too boosts the economy. What would the economists prefer to see? Less overall personal debt nationally or an increase in Budweiser and Ho Ho snack cake sales? Hmmmmm I don't know that's a toss up for me too. Right, let's ask ourselves this question: What economic bracket were the majority of people who foolishly took the variable rate mortgages that has so affected our economy? Were they the extremely wealthy, the 2%? No? Was it the people who were on state and federal housing assistance i.e. Section 8? No again huh. That leaves the Middle class doesn't it. So this group of people who spent so furiously on homes they could not afford, who used their homes as ATM machines to take trips and buy cars, cannot be trusted to spend a $1,200 rebate frivolously? I guess that makes too much sense for the Libs. Aren't the Democrats constantly saying how unfortunate these "Victims" of subprime mortgages are?.

Being in the middle class myself, after WORKING VERY HARD to advance myself from poverty, I have an idea as to what most people in the middle bracket will do with any extra cash.

1. They will put a portion of it to their existing Debt, not all, and maybe not a lot of it either.

2. they will TREAT themselves to a purchase of some kind. More than likely a Hard goods item such as a DVD player or maybe a power tool.

As to saving the money? Too few Americans, at least here in the north east are in a position to do that. With the ever increasing rise of heating and automobile fuel, your average taxpayer is barley keeping their head above water, especially in Maine. Which leads me to my second point.

The average TAXPAYER cannot get heating assistance to heat their homes, they do not get food stamps to feed their families. They do not get subsidized housing, free health care, or Christmas baskets. No one is sending them clothing and toys for their children. ( By the way Mr. Altschuler, there is a little program here in Maine called " Coats for Kids" you and your unwed mom should check it out sometime.) No, the average taxpayer is on his/her own. They pay to the Federal Government each week a portion of their income to help fund the very programs they are not eligible for. Let me hear you say Unfair again Ken. Unfair to whom? So if the provision goes through the portion of the populace, that receives the most support from the State and Federal governments will get even more. Undeservedly, I say. For, they have not contributed a dime, they are already receiving a tax break as they don't have to pay tax in the first place. Meanwhile, the very people who support and Fuel the economy, day in and day out, are supposed to turn a blind eye and say, " It's OK, take more of my hard earned money and spend it. I'm sure you will spend it more wisely than I."

I say, if we need to boost the economy in this way short term fine. Give me my money back and I'll do my part. But don't give it to some lazy, besotted, ejit who I already over support by way of my tax.

Slainte'
Blighter