Stimulus Package

I am really growing tired of our elected officials on both sides of the fence playing with the American people.  Just tell the truth!  The reason why our economy is suffering is because of the policies set by this administration.  Outsourcing has ripped a whole in the American workforce.  

A stimulus package is only a small band-aid to our problems.  Until new policy is created that will address corporate America’s greed and how the wealthy have taken advantage of this to maximize wealth by any means necessary; and the middle class and working class American is paying dearly for it.

Some of us maybe getting anywhere from $600- $1200 in the form of rebate checks.  That is not going to get someones house out of foreclosure (Foreclosures up 75% in 2007).  This is not going to make it easier for middle class families to send their children to college.  You may be able to pay 1 bill, others may blow it on material things that  they don’t need and a very few may actually save it.  Whatever category you fall in, will this stimulus package really work?  Some say it’s a start, I say it is a weak attempt to pacify the working an middle class.

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7 Responses

  1. NS: You should consider clarifying your remarks. You said:
    – Outsourcing has ripped a whole in the American workforce.
    – Until new policy is created that will address corporate America’s greed and how the wealthy have taken advantage of this to maximize wealth by any means necessary;
    – That is not going to get someones house out of foreclosure (Foreclosures up 75% in 2007).

    Are these three points related? Outsourcing relates to a company’s ability to obtain a comparative advantage by using cheaper labor offshore. Now I’m not “W” fan, but I don’t think outsourcing is caused by the current administration’s policy. Rather, there’s a stronger argument that outsourcing reflects corporate America’s reliance on lower wages to keep its products’ prices. You have to ask yourself, do you want higher prices for goods and services or do you want lower prices? Our desire for lower prices makes us all accomplices to the outsourcing phenomena. Don’t believe me? Ask how many of your readers drive foreign vehicles and shop at Wal-Mart.

    “Until new policy is created that will address corporate America’s greed and how the wealthy have taken advantage of this to maximize wealth by any means necessary”

    Do we want corporations not to make money? If so, I’m concerned that you probably don’t have money invested in mutual funds or retirement accounts that are invested in corporate America. It is easy for us to blame the wicked, corporate America, yet we drive nice cars, live in homes with low-priced flat screen TVs, and want to see our retirement savings grow. Suffice to say, corporate profits are a good thing when you position yourself to share in those profits. For example, the benefits of being a Wal-Mart investor are significantly higher than being a Wal-Mart customer.

    “That is not going to get someones house out of foreclosure (Foreclosures up 75% in 2007)”

    With respect to foreclosures, you have to admit, NS, that a lot of people facing foreclosure gambled and lost. Think of how many people in P.G. were trying to make a quick buck off of their property investment. Think of how many people bought homes, took out home equity loans, bought new cars and $25K decks thinking that they would be able to sell their home in a few years for crazy profit. People who saved money and bought homes within their means, and then avoided maxing out home equity loans, are not at risk. The federal government should not bail out people who made bad financial decisions. Think about it, if you only make $40,000 a year, and you know darn well you can’t afford a $400,000 home but you buy one anyway–why should the federal government bail you out when your ARM resets and you’re unable to make payments?

  2. I will admit that some of the housing mess is due to people who purchased homes they cold not afford, and some people got carried away with flipping houses, but there are a lot of people who fell on hard times and simply could not make ends meet. I am saying that this stimulus package is not going to help things; I would rather them not do it at all.

    Companies are in the business of making money and maximizing profits and there is nothing wrong with that. The question is to what extent? To the point that they fudge financial statements? You have major fourtune 100 and 500 companies reporting huge looses and their CEOs are walking away with multi million dollar packages. Something has to give.

    I know some may say this is what made this coutry the powerhouse that it is, but something has to give.
    So what do you do when all of your neighbors foreclose on their homes and as a result your property value goes down because they live on your street? What do you do? I guess that is what everyone is trying to figure out.

  3. “So what do you do when all of your neighbors foreclose on their homes and as a result your property value goes down because they live on your street? What do you do? I guess that is what everyone is trying to figure out.”

    Great questions. First, I think the market will correct itself to the point where homes are priced based on true market value rather than an overpriced, subprime driven market. All homeowners will be negatively affected to some extent. Second, when I think that market prices are rational, I’m planning to sell my current home and move into a more expensive area where I can avoid what I’ll call “subprime neighbors”, i.e., people who live in big homes but carry themselves and maintain their properties as if they live in Section 8 housing (albeit with a nice car in the driveway with a boomin’s system that they blast when coming home). Finally, I’ll continue to make smart investments by gaining knowledge about financial products and services that will maximize my investments. In sum, I’m not for government intervention when people make stupid mistakes. I agree with you, however, that something should be done and that the a check for $300 – $800 bucks isn’t going to solve the crisis.

  4. The whole point of the “stimulus” rebate is for us to spend it. They’re giving it to us, to about-face and give it right back to them. How else would the economy be “stimulated” unless we buy things?

  5. I don’t know about anyone else, but I paid over $21,000.00 dollars in federal taxes last year, so I am going to enjoy my rebate. As for the people with minimum wage jobs that believe, they actually qualified for that $5000.000 house? Guess what, you’ve been had. Yes, its back to section 8 housing. If we don’t learn to manage our finance, if we don’t get a well grounded education in order to understand basic economics, we will remain subject to exploitation.
    I am going to use my rebate to buy a laptop for my daughter, she is on the way to college. Everyone else can continue to watch BET or American Idol.

  6. I’m using that money to help pay off my bills. Two years ago, I started to get serious about my finances, and managed to pay off a lot of stuff. I had to give up many things I love. (No more designer stuff, taking local vacations as opposed to going overseas, living in a smaller house than what I had in mind) Yet, being able to see a bill that reads $0 balance is the best feeling in the world.

  7. It’s funny to say this, but I’m probably going to eat it- groceries that is!

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