Recession S.O.S. - goosing growth

[Lone_Star_Dem]

Source: CNNMoney

NEW YORK (CNNMoney.com) -- You may be getting an extra few hundred extra bucks for your wallet this year courtesy of the federal government. And if you could spend it as fast as you get it, lawmakers would be most appreciative.

Rebate checks are just one of the ideas reportedly being considered by Democrats and Republicans to nip a potential recession in the bud.

<snip>

What's more, Gordon said, once lawmakers put a temporary tax cut in place there's a lot of political pressure to leave it there or risk being accused of raising taxes. The Concord Coalition doesn't have a problem with a temporary increase in the deficit due to efforts to combat recession, he explained. But too often, he added, "all stimulus options do is blow a hole through the deficit."

<snip>

Reports have indicated that politicians are considering rebates as high as $500 per individual or $1,000 per couple.



Read more: http://money.cnn.com/2008/01/09/news/economy/stimulus_pkg_advances/index.htm?postversion=2008010911

[Hugin]

1. Not to sound like a GOPper talking about socialized medicine or S-CHIPS...

But, where's the money for this coming from? :shrug:

[Lone_Star_Dem]

3. Donations from Halliburton?

It reads to me as if they're attempting to buy votes rather than repair our damaged economy.

[Hugin]

6. I agree with your reading of the motivation.

:thumbsup:

[Paula Sims]

4. Another pre-IRS tax "rebate" (aka loan)? n/t

[Selatius]

5. It's borrowed money, financed by the US Treasury selling more and more government bonds.

Those bonds aren't going to pay themselves off, and the interest on those bonds aren't going to go away either.

[InkAddict]

2. They're out of their minds - eom

[ChairmanAgnostic]

7. there are cycles in nature and in economics.

the key is to minimize the damage at either end of the cycle. Too high of growth, and inflation gets really nasty. Too slow, recession can grow into depression. Downturns do provide relief of some pressures, just as upturns provide additional advantages. WITH MODERATION.

What Team Bush has done, artificially, is to put back this recession by a good 5-7 years, especially with his off the books war spending. That means when it comes, the natural cycle will be that much deeper and damaging.

[madrchsod]

8. if more people go to work

opps no jobs

then wages rise

well maybe

then they will raise rates to stem off inflation

thus we are still fucked

how did any of these twits get past econ 101?

[Javaman]

9. That's right, when stuck in a hole, the logic is always to dig deeper...

:banghead:

[donkeyotay]

10. GOP bribery. Tax cut. Tax cut. The democrats will raise your taxes.

What utter crap. George W. Bush and his fabulous Republican Rubberstamp Congress have driven the country into the economic ditch. Now that the economy is tanking, and it's inconvenient timing for the corporations' next candidate, they are floating these stupid bribes.

Here's a few ideas for the anti-tax Republicans. Cut the payroll tax. How the hell to you expect us to compete with the Chinese?

Stop the purchasing monopoly on hospitals. Open hospital supply up to an Internet marketplace that is transparent and competitive.

Investigate. Regulate, and throw the worst of the worst into jail. That'll clear up some corruption.

If you need any money, get it from the bloated defense budget.

Stop spying on us. That'll save a few bucks.

If you want to invade someone, invade the Cayman Islands.

[salinen]

12. Dumb idea

They have speedboats in the Caymans!

[i want in]

11. Here is an Idea

When and if the rebate is given, turn it into Paso's.

Soon mexican currency will be higher then the dollar, just the way neo-cons want it.

[pokercat999]

13. -$500: a bad night at the poker table. -$1000: an "aw crap"

night at the poker table. +$1 a that was fun night at the poker table +$1000 a :woohoo: night at the poker table

[roamer65]

14. Tax cuts during a war are a very bad, inflationary idea.

They would have to create currency to do it. The Ottoman Empire printed currency to fund its involvement in WW1. The paid dearly for it with a 600% inflation rate.