Ernesto and I have had this back and forth on the whole “stimulus package” the government has set up and I am thinking it will have little, if any effect on the economy. I am predicting a brief rise in consumer spending and then back to the dreary status quo. Obviously I am no expert, and not even seasoned economists can say for sure what will happen and believe me, I would certainly like to see a positive outcome from this, but I don’t think it bodes well.
Don’t get me wrong, I’m still happily accepting this money, even though it is borrowed from ourselves and/or China, who we already owe about a trillion dollars to. Who cares, right? I’m guessing there are people who will make some purchases and lots of other people who will use the money to pay off debts, like all the oil bills incurred over the brutal winter, or some will stock it away to pay for gas for their cars. It ought to last a couple weeks, anyway. Ours is going to help pay for private school for our eldest. If we were good Americans, we’d use it for a vacation or a big TV or I could buy twenty pairs of really good shoes. I wish we could spend it on something really fun or lavish, but we’ve got a mortgage and three kids, so there you go.
How will you be stimulated this summer?
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