Confused About This Economy Stuff
From what I've gathered, there's a big divide on whether a "stimulus package" will actually help the economy. As you might expect, I have some thoughts, although I admit that I do not totally understand the boundaries of the issue.
First, it seems like Obama started a while back in recruiting notable economic minds to hatch this plan. I know he met with folks, but I have no way of verifying how much input any of them actually had.
Second, it makes more sense to me to invest in our own country than a country half way around the world which doesn't seem to want our help any longer.
Third, I'm hearing that there's obvious opposition from Republicans, but also dissent from Democrats. I've heard at least one Republican state that he'd rather see tax cuts than a stimulus plan, which makes sense to me, but also seems like the same basic thing. The bottom line in either case is whether the money people/business receive or don't have to spend is put away for safe keeping, or spent. Everyone agrees that more long-term purchasing is what the economy needs, right?
Fourth, why is a stimulus package "socialist" but taxes are not?
Fifth, I don't understand how putting hundreds of billions of dollars into the economy will fix anything in the first place. Sure, there's spending, but that money could be gone in a year. Then, everyone has a new TV, but our 401Ks are still depleted.
Sixth, could it be that baby boomers are retiring and there's less and less fluid cash in the markets? Could they be conservative, and upon hearing about tough times, start stuffing their mattresses? Could one generation of Americans be tipping the scales for the entire world economy?
What's your take?
Posts
