Thoughts Economic

I guess the latest show down on the stimulus bill will be taking place a little later today. I think it is important that it pass. Something needs to be done.

I've been doing some thinking about it. The Republicans say there's too much spending and not enough tax cuts. Everything I read about the bill, it seems fairly balanced between the two.

Here's the problem I have with the push for more tax cuts. I don't think it is enough money. As whole it is a huge amount of money but per person is where it matters the most. The cut in taxes that the Republican propose, as far as I've been able to tell, are not going to put huge amounts of money in people's hands. Look at it this way say the idea is to give everyone $1,000. Now with a lump sum most people are thinking wow I've got $1,000. I can pay off some bills and get that new washer that I need (which by the way I do need a new washer).

But if you go the tax route the $1,000 might come to each person by a reduction in their taxes of say $20 a week. Yes, over the course of the year, you'll get the $1,000 but you don't have it in hand all at the same time. No one is going to go wow over 52 weeks I'll have a $1,000.

That's always been my problem with a tax cut. Also the more money people make the more they are going to get back. Rich people are not the people you need spending money. They are certainly an important part of getting the economy back on track but it is every day people that you need spending. The extra $20 a week means people might use it to help pay for groceries. The extra $1,000 in hand means they might buy the washing machine. And right now we need people buying more washing machines.