The Economic “Stimulus” Package
Posted by Vogeler on February 25, 2008
Well, the so-called “Economic Stimulus Package” has passed, which means that Americans will receive a tax rebate check this summer. Here is a link to a really good article by Clark Howard that explains it well.
Although it’s nice to get “free” money, it’s not really free. To pay for this, the Federal government apparently is going to issue treasuries, which are basically loans to the government (kind of like a very large CD). So, the next generation essentially gets stuck with the bill.
I agree with Clark that this is not a good idea, for two reasons: one, as previously mentioned, it’s not a good long-term solution like a revamped tax system would be. Two, it encourages more consumer spending on luxury and semi-luxury goods. I, for one, will be using mine for debt paydown or savings.
Some of you know that I am currently (along with my lovely wife, Bethany) on a crusade to be debt-free by the time I’m 40 years old (I’m 29 now). Far-fetched? Sure. But I know of people who have done it, who had a ton more debt than we do.
Here are some of the personal finance blogs I read daily:
All are fantastic resources with information on how to take control of your finances.