According to the federal government, our collective grandchildrens' hundreds of billions on a combination of tax cuts and government spending increases are going to stimulate customer and corporate spending. Personally, I'm willing to bet there will be some impact but wouldn't wager much on the extent of the impact.
Motivating long-term saving behavior has been given low priority in this bill. That's a curious fact considering that the existence of savings could have kept a lot of people out of further financial trouble from the market's inevitable slowdown.
It's also notable that no "stimulus" is being given to any form of saving. No additional tax break for saving and investing your money for your long-term future (not to mention your country's). Instead, about 95% of us will get a check for $400 with a not-so-subtle wink to go get some electronic gizmo we might not otherwise be able to afford?
Where's the stimulation to save?
I understand the macro implications of all of us saving (less spending, bigger contraction in GDP, more jobs lost, etc.) We must remember, however, that excessive spending and a collective lack of financial cushion was part of the cause of this mess in the first-place.
Do react.
Motivating long-term saving behavior has been given low priority in this bill. That's a curious fact considering that the existence of savings could have kept a lot of people out of further financial trouble from the market's inevitable slowdown.
It's also notable that no "stimulus" is being given to any form of saving. No additional tax break for saving and investing your money for your long-term future (not to mention your country's). Instead, about 95% of us will get a check for $400 with a not-so-subtle wink to go get some electronic gizmo we might not otherwise be able to afford?
Where's the stimulation to save?
I understand the macro implications of all of us saving (less spending, bigger contraction in GDP, more jobs lost, etc.) We must remember, however, that excessive spending and a collective lack of financial cushion was part of the cause of this mess in the first-place.
Do react.
The author is right on the mark. Those of us that have been disciplined savers all along, purchased homes we could afford, bought used cars and paid them off quickly, lived frugally in general, are doing okay during this downturn. Those that spent foolishly and lived paycheck-to-paycheck, are hurting. The only way this country is going to get back on track, in the long run, is to encourage more saving and more responsible behavior by consumers.
Our elected representatives have to stop spending money like drunken sailors and start tightening down as they want all of us middle class people to do. How much more do they expect us to shoulder before we collapse. Oh, I get it, they want to destroy the middle class and turn us into socialists.