Home Mobile Archives Reader Blogs Register Login

Wednesday, May 07, 2008

Shocker: Most Americans Saving Rebate Checks, Or Using It To Pay Down Debt

The folks in the media are trying to play off the rebates as little more than a fart in the dismal wind of a recession (a recession that’s yet to manifest itself, butt I digress), but there is a larger point here to be made:

GIBSON CITY, Illinois (Reuters) - The first batch of taxpayers has already started to receive their federal tax rebates as part of the economic stimulus package, but very few consumers interviewed by Reuters in the past week said they plan to spend them on anything other than necessities. . . .

According to a recent survey, some 70 percent of people said they planned to save their rebate or use it to pay down debt.

Nancy Pelosi is saying she wants more rebates to further stimulate the economy.  So let’s think about this for a moment.  More money in our pockets means more debt getting paid off (especially nice given the housing market).  More money available for necessities.  And, in some instances, more money available for luxuries.

So, if all that is true, why not make the rebates permanent by cutting taxes for all Americans?  Why not let all Americans keep more of their money in their pockets rather than sending it off to the government?  Certainly that would be a cheaper (from an administrative standpoint), less complicated and more-permanent solution to our current economic stagnation.  If a one-time check can help, how about a permanent reduction in the amount of taxes paid?

Or does that make too much sense?

Comments

since when is it the duty of the Government to pay for someone’s mortage. I think this is wrong, wrong, wrong.

Mark Levin was talking about this yesterday.


check out Goon’s World

http://ndgoon.blogspot.com/

Goon’s North Dakota Red Neck

http://redneckndgoon.blogspot.com/

goon on May 7, 2008 at 08:53 am
Avatar for Hannitized

Actually it doesn’t make any sense.  Not that you would agree.

Research shows that Americans who have the chance to act responsibly today, will, over the choice to spread responsibility out over time.

In other words.  If you give people a bigger pay check, they will spend that accordingly and simply extend living beyond their means to a new level, but still live beyond their needs.

Giving people a lump sum on occasion will usually result in a more responsible act of paying off loans or debt.  That, in turn, encourages them to obtain better finance rates, which in turn creates more responsible spending.

But why bother caring about that?

Hannitized on May 7, 2008 at 09:04 am

I am using the check to pay my taxes. Now that is ironic.

Mickey on May 7, 2008 at 09:06 am
Avatar for Hannitized

That is actually a good example of what I am talking about Mickey. 

Many people get themselves in a situation where they either dont claim the proper amount of dependents, or live to the point where they are living paycheck to paycheck.

Giving people more of their money by taxing less isn’t going to magically make them more financially responsible, most Americans who get more money over a longer period of time will simply buy a bigger car, house, dog or whatever they are doing that prevents them from doing the responsible thing.....over time.

But, when you get a lump sum....most Americans will spend it responsibly.  This can reduce debt, decrease finance rates and give them a better chance to buy other things with better finance rates and a build more debt until their next lump sum comes in to help pay it off.

I think Pelosi is right.

Hannitized on May 7, 2008 at 09:57 am

Giving people a lump sum on occasion will usually result in a more responsible act of paying off loans or debt.

Uh, where in the Constitution does it assign to the government the task of being the responsibilty police?  You’re actually making the case that since I won’t spend a permanent tax cut the way YOU think I ought, I shouldn’t get one?  How egalitarian of you.


America wasn’t founded so we could all become better.  America was founded so we could all become whatever we damn well please.

Regards…

LoadTheMule on May 7, 2008 at 09:59 am

On the one hand, the lefties continually whine that we are a “consumer society” that doesn’t save enough and that incurs too much debt, but when we save the money and pay down our debts, that’s no good, either.

Lefties lie; it’s all they have.


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on May 7, 2008 at 10:09 am
Avatar for FlyOnTheWall

butt I digress

Heehee, he said ‘digress.’

All the money goes in the same household pot.  So really, everyone with a job is using it to pay taxes.  Sorry, bit of irony got stuck in my throat. 

The people with bad spending habits get to a freebie to do it more.  A few people can do responsible things with it (cough, fix cars) and they get villified in the press. Sigh.

FlyOnTheWall on May 7, 2008 at 10:09 am
Avatar for FlyOnTheWall

But, when you get a lump sum....most Americans will spend it responsibly.

Hannitized, I disagree and my opinion is backed up with several decades of Lotto winner data.  I think a single payback might be wrongheaded but multiples . . . bad idea… words fail me.  Pictures of Government and piglets lining up to suckle come to mind… I apologize for my lack of coherency but I hope I’ve communicated my feelings.

FlyOnTheWall on May 7, 2008 at 10:59 am

FOTW & Hannitized:  Who care how they spend it.  It’s THEIR money!  If the Government can give it back, WHY was it taken in the first place?


"Here lies, in honored glory, an American soldier, known but to God.”

THIS ELECTION IS ABOUT TWO THINGS: WINNING THE WAR ON TERRORISM AND SAVING THE SUPREME COURT.

pparets on May 7, 2008 at 11:09 am

LoadTheMule - You’re actually making the case that since I won’t spend a permanent tax cut the way YOU think I ought, I shouldn’t get one?

Leftists are pompous little authoritarians, aren’t they? Because they’re government, they’re endowed with special Jedi-like knowledge that is unavailable to the average non-leftist citizen.

The “liberal” justification for these “rebates” show that they want to be our parents doling out allowance.

likwidshoe on May 7, 2008 at 11:58 am

The “liberal” justification for these “rebates” show that they want to be our parents doling out allowance.

Can “the dictatorship of the proletariat” be far behind?


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on May 7, 2008 at 01:16 pm

This is the BUSH STIMULUS.

This is not getting back money. this is money that is being “created” (printed) and thrown onto the economy.
Has anyone been alive when the gov’t just sent people money?
It’s a new one on me.

It is an indication of how scared they are in Washington DC that the American economic calliope will crash to the ground.

WOOF on May 7, 2008 at 01:56 pm

Can “the dictatorship of the proletariat” be far behind?

It will be if the Left gets bigger margins in the next election. Can you imagine a left-tard persident, senate and congress. They will run this country into the ground, confiscate guns, enact the fairness doctrine, sqash debate and basically enact this socialist eutopia. The USA will look like the USSR light.


check out Goon’s World

http://ndgoon.blogspot.com/

Goon’s North Dakota Red Neck

http://redneckndgoon.blogspot.com/

goon on May 7, 2008 at 01:57 pm

This is the BUSH STIMULUS.

This is not getting back money. this is money that is being “created” (printed) and thrown onto the economy.
Has anyone been alive when the gov’t just sent people money?
It’s a new one on me.

It is an indication of how scared they are in Washington DC that the American economic calliope will crash to the ground.

Wrong this is the Pelositard stimulus, Bush is just stupid enough to sign off on it. The Housing Stimulus is from Barney Frank.


check out Goon’s World

http://ndgoon.blogspot.com/

Goon’s North Dakota Red Neck

http://redneckndgoon.blogspot.com/

goon on May 7, 2008 at 01:59 pm

Bubble Boy suggested the stimulus

Bush on Friday urged that an economic stimulus package worth nearly $150 billion be passed immediately to head off a nationwide slump, while expressing confidence that the sagging economy will rebound.

In a well-received address, Bush said the package would consist of income tax relief and tax incentives for businesses, but veered away from specifics. He said it should be temporary and geared to restore money quickly to the pockets of consumers, so they can infuse the economy with new dollars as the housing market slump and other factors put it at risk.

Faux News

WOOF on May 7, 2008 at 02:12 pm

He said it should be temporary and geared to restore money quickly to the pockets of consumers, so they can infuse the economy with new dollars as the housing market slump and other factors put it at
risk.

Leftie economic thought is always wrong, no matter who says it.


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on May 7, 2008 at 03:19 pm

...the American economic calliope will crash to the ground.

Thank you, Karl Marx.  He was wrong about that, too.
The only real “economic stimulus” possible is to reduce govt spending to the amount necessary for the legitimate functions of govt, according to the Constitution.
Without govt interference, the economy stimulates itself through individual self-interest.  Everything the govt takes from the productive citizens is then unavailable to stimulate economic activity.


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on May 7, 2008 at 03:23 pm

People saving a windfall?  Well, it proves that citizens do in fact know economics better than both Congress and the Federal Reserve.  Let’s just hope that 51% of them show up and pull the lever against Obama this fall!

Bike Bubba on May 7, 2008 at 03:35 pm

how scared they are in Washington DC that the American economic calliope will crash to the ground.

When do calliopes ever leave the ground? WOOF: I know you like to use words you do not know in absurd, yet meaningless ways. Is this a prerequisite to becoming a liberal these days?



Those who think the party or the country, will be “taught a lesson” by handing the levers of power over to the liberals will learn a lesson, but it will be at the expense of our country and her liberties. And there are no guarantees that the party or the country will come out stronger, more conservative or better positioned to win elections against the incumbent liberals.

Proof on May 7, 2008 at 03:53 pm

musical instrument that produces sound by sending steam through whistles, originally locomotive whistles. The calliope is also known as a “steam organ” or “steam piano”. It was often played on riverboats and in circuses, where it was sometimes mounted on a carved, painted and gilded horse-drawn wagon in a circus parade

Image and video hosting by TinyPic

And some new-mown chaperone was standin’ in the corner, watching the young girls dance

And some fresh-sown moonstone was messin’ with his frozen zone, reminding him of romance

The calliope crashed to the ground

Manfred Mann, Blinded by the Light

WOOF on May 7, 2008 at 04:54 pm

Ah, yes! Make it bold! Now it makes perfect sense!



Those who think the party or the country, will be “taught a lesson” by handing the levers of power over to the liberals will learn a lesson, but it will be at the expense of our country and her liberties. And there are no guarantees that the party or the country will come out stronger, more conservative or better positioned to win elections against the incumbent liberals.

Proof on May 7, 2008 at 05:11 pm

Ah, yes! Make it bold! Now it makes perfect sense!

He was blinded by the light.
Wrapped up like a douche.......then becomes as difficult to decipher as Louie Louie!


"we should select our leaders on principle first, electability second.”

A young man whose wisdom far exceeds his years

Spartacus on May 7, 2008 at 05:27 pm

So Woof, now in these times of need, we’re taking our cues from Manfred Mann?

Mohair Sam on May 7, 2008 at 06:06 pm

Better than the Weimar Republic
economic advisors Sam.

in these times of need, we’re taking our cues from Manfred Mann?

WOOF on May 7, 2008 at 06:35 pm
Page 1 of 1        

Post a Comment


Before commenting, please recite:

Grant me the serenity to ignore the trolls,
the courage to debate with honest opponents,
and the wisdom to know the difference.

Name   
Email   
URL   
Human?
  
 

Upload Image    

Remember my personal information

Notify me of follow-up comments?

Note: Notifications will only be sent to confirmed email addresses.