Can someone who is better at economics than I am explain this to me? I can't decide if this is a good thing or a bad thing. I am so lost when it comes to this kind of thing.

Also, if I got a refund on my income taxes last year, will I still get this? *scratches head*

Also, if I DO get the $1,200, will I save it like a responsible person, or will I buy a TV with it which is what I'm SUPPOSED to do with it so I can "stimulate the economy"?

Yes, you will still get the check. It doesn't matter if you got a refund or not.

[side note: try to adjust your tax witholdings so you do not get a refund. A refund on your federal income tax is a very bad thing. That means that you gave the government a interest-free loan. You gave them too much money t/o the year and they are just giving you back the extra.]

Now as to the question of whether this will be a good thing or a bad thing, that is debatable.

If most people held onto the money in savings or even just used it to pay down personal debt it probably wouldn't help the economy very much at all.

If people go out and spend it than it can give a short-term limited boost to the economy. How much of a boost is the question. A question which has no guarantees.

The cost of the 'rebate' to the federal coffers/national debt is minuscule in the grand scheme of things. It is a lot of money, but it is a very small percentage.

The problem I see is that our national debt is already a painful figure and government spending is only going up. So while our pocket books are getting a shot in the arm the government isn't doing anything to increase the value of those dollars. If anything they are lowering the value of the dollar because these refunds are not coming in the form of spending cuts so they'll just be printing more money and diluting the supply.

Basically they are borrowing money in our name, giving it to us to further inflate- thus devalue the dollar and drive us deeper into financial ruin.




THAT IS AN ABSOLUTE FACT.

Plus, given that it's tax time, plus there is still negotiating to be done on other parts of this proposal, we won't see any money from it until perhaps May-July at the earliest..

Bread for our circuses? Waiting on Unka Sam to give us money?

If I did get the money, I'd spend it on dental or a new pair of glasses..... Or on hubby's credit card debt...

I'm gonna buy DEP new forks.

This is "hush money." And it's a very bad thing.

"Yeah, we know the economy is bad, but here's some money, so shut up."

Lower gas prices would lower grocery prices, people could afford more, people would spend more.

This would be a much more effective way to boost the economy.