Comments on: Stimulus Package Explained (Q&A)

By: tuma

tuma — Tue, 17 Feb 2009 19:22:35 +0000

Here is the reason for the stimilus
Q. What is an Economic Stimulus Payment?
A.To placate the Chinese by borrowing more money from them, so that they don’t foreclose on the White House.

By: cyberbird

cyberbird — Tue, 17 Feb 2009 18:06:40 +0000

The latest news can be found at http://2009stimuluscheck.info/

By: DeDude

DeDude — Mon, 16 Feb 2009 16:36:41 +0000

The sad thing is that after a downturn is obvious to everybody, they will save money not spend it. That is why taxcuts (to consumers and businesses) are useless as economic stimulus, at this point in the cycle. It simply turns into borrowing money from the future and putting it into the bank – to be used to pay of that loan sometime in the future. Unless we can get inflation jumpstarted, that will have absolutely no effect on the economy; and if we fall into a deflationary depression those taxcuts will be a disaster. At this point in time the only way to stimulate the economy is government spending on educational and infrastructure projects that will get American hands back to work and improve our competitiveness later when the economy start to recover worldwide.

By: sulayman

sulayman — Sun, 15 Feb 2009 22:51:20 +0000

I hate when people say that when I buy gas, it goes to Al Qaeda. Do you have any proof of this?

Al Qaeda’s assets are frozen, and if a Saudi gives money to them, they face arrest and prison. The same in the other countries. Saudi is trying to be legitimate, plus they are actively fighting terrorism within their own country.

By: cjared

cjared — Sun, 15 Feb 2009 15:48:27 +0000

Barry,

The value add of goods made abroad is mostly locally made by Americans. China sells us a pair of pants, for $5 bucks, landed, for which we give them an IOU. Then we pay Americans huge salaries to market those pants, pay landlords huge rent for the shops, pay advertising executives huge salaries for ads, etc, etc. And then, the American consumer pays, $60 for the pants. So, $55 bucks go to Americans, the Chinese get an IOU for $5. And, to make the deal better for Americans, the Chinese can never cash in the IOU, if they do, their currency will rise, damaging their exports, creating unemployment.

Sounds like a good deal to me. So, everyone, get a new pair of pants, a toaster, or whatever you want!

By: spaceodg67

spaceodg67 — Sun, 15 Feb 2009 14:59:28 +0000

Um, if you are going to drink American beer, then you may want to carefully choose your choices. Budweiser is made in the USA, but has a foreign owner, same with Miller. I believe Sam Adams, Anchor Steam, Schlitz(restarting production and marketed in Milwaukee and Madison,WI ONLY!), Point, or any local beer is safer. Or just brew your own, though the kits are probably made in China as well.

I’m willing to give my stimulus check right back to China ( I make less than $50G/yr). That’s the way I operate, if I borrow money from a friend or bank. I pay them back as quickly as I can! Oh, I have to suffer with things like homemade dinner, reading a book, or taking walks. No brand new car, eating at a grand resturant, or buying the lastest greatest techno device.

Sorry, I can not run for president, I’ve been kicked out of the US Navy, oh wait, so did Walt Disney!

By: jonbo in AR

jonbo in AR — Sun, 15 Feb 2009 12:50:03 +0000

If all our spent dollars are headed straight overseas anyhow, what difference does it make whether or not we’re in a recession/depression?

By: winstonw

winstonw — Sat, 14 Feb 2009 22:27:40 +0000

Another factor ill considered by wet behind the ears Keynesian social progressives in their understanding of economic stimulus, is that as soon as an imported good is bought, and most of the borrowed foreign money heads back overseas, that’s the end of the money multiplier effect in America. And it is the multiplier that provides most of a stimulus, over 90% of it.

Unfortunately, when a country doesn’t produce much within its borders, an economic stimulus is bound to fail…..and is nothing more than an impotent, deluded, anachronistic concept held to by economic naives with all the understanding you’d expect of a community organizer.

By: doctorforest

doctorforest — Sat, 14 Feb 2009 21:40:00 +0000

The best way to Stimulate the US economy is to use your check as collateral for a X10 loan. Then use the proceeds from the loan as collateral for another loan at another bankrupt bank. Do this 1000 times at 1000 banks and you will have single handedly rescued the economy as well as being the richest idiot in the USA.

By: bardium

bardium — Sat, 14 Feb 2009 21:27:16 +0000

I loved this piece. It says it all. This is why I follow this blog, though I often throw things at my monitor when I read it.

I hope it’s OK that I reproduced this piece on my blog, with proper credit, of course. http://www.dailycapitalist.com