Economic stimulus package coming?

Kizzume · Posted: Wed Jan 16, 2008 7:09 pm Post subject: Economic stimulus package coming?

http://online.wsj.com/article/SB120051473033395285.html?mod=googlenews_wsj

technocrat · Joined: 04 Dec 2007 Posts: 216

Long ago on OLT, when I mentioned a recession leading to a depression, I was laughed off as just exaggerating and crazy. Now they are all agreeing. Amazing prediction skillz I got, yo. I ain't even an economist. Cool

Bad moojo is going down man. I warned'yall.

Kizzume · Posted: Thu Jan 17, 2008 1:51 am Post subject:

I've been seeing this coming for a while--I just was hoping it would be a year or two longer before it actually started to happen.

redstaterebel · Joined: 05 Dec 2007 Posts: 128

We need a package - tax cuts.

This is a chance for the democrats in congress to finally do something with their majority.

Kizzume · Posted: Thu Jan 17, 2008 11:52 am Post subject:

Tax cuts? That does not sound like the right answer--we could ONLY do that if we completely cut all funding for the war. The economy isn't going to get better by spending more and taxing less.

Kizzume · Posted: Thu Jan 17, 2008 12:52 pm Post subject:

http://www.forbes.com/feeds/ap/2008/01/17/ap4544823.html

redstaterebel · Joined: 05 Dec 2007 Posts: 128

Kizz -

I know that it sounds bad - with already a 300billion per year shortfall - and several trillions in national debt - but its the only thing the government can do.

This is the Reagan model -

Reduce taxes for everyone:
Low/Middle Income: more money in their pockets to pay their bills and buy goods and services.
Upper Income: more money in their pockets to hire people, build factories, start a business, build a house, buy a car ect. Gets the economy moving.

Ideally we should cut gov't spending at the same time - on the wasteful shit that we don't need. However, spending on infrastructure for example also creates jobs and is a stimulus.

Both democrats and republicans agree that tax cuts during hard times are good - the differences are on who gets the lion's share. Reagan proved that we can cut taxes by a TON and the government will eventually take in MORE money than they did at the higher rate. Same with the Bush tax cuts of 01 - the treasury takes in more money now they did in 01.

Kizzume · Posted: Fri Jan 18, 2008 7:03 am Post subject:

I hope you're right. I hope this will help things.

Kizzume · Posted: Sat Jan 19, 2008 12:44 pm Post subject:

Well, here is a clip from a recent story:

http://voanews.com/english/2008-01-19-voa21.cfm

redstaterebel · Joined: 05 Dec 2007 Posts: 128

I'm ok with extending benefits - with a tax cut for all tax payers (including corporate taxes) - once enacted, it takes awhile for this money
to trickle into the economy - this needs to happen now. I'm not hearing the congressional leadership talking about it much though - which troubles me.

I fear that this is like Iraq - the democrats would rather have the issue for the Nov election than try to fix it now. If the economy is worse in November, they can try to use it to their advantage. The democrats do this regularly and it pisses me off.

Kizzume · Posted: Tue Jan 22, 2008 11:25 am Post subject:

Oh man, I hope you're wrong about the democrats. I sincerely hope you're wrong.

jq · Joined: 02 Dec 2007 Posts: 1124

I disagree with the tax cuts theory, but-- if thatts really what they want to do is cut my taxes-- I won't complain.

As for the dems using this as a political opportunity, let's be honest-- both sides do this. But for the sake of myself and my neighbors I hope the economy gets better soon!

For the record I think the best way to fix our economy is to fight inflation. Inflation is what's hurting my pocketbook the most and a tax cut won't be enough to fix it.

Let me give you an example of recent inflation eating my cash: I shop at costco. I try to stock up for as long as possible so I don't waste time grocery shopping. Last time I went there it was $9.98 for a 60 pack of cheese sticks. Now they are $11. My cold cofee (which helps my health condition more than anything else) used to be $12.26 per dozen. Now it is $13.99. My kirkland brand soda that used to be $4.39 per 24 pack, now $4.85. Everything-- my pizza, canned food, milk, etc, has gone up. Though I typically buy the same exact list of stuff each time, it now cost $20 more every time I shop at costco (Twice a month.) That is now $40 more per month I pay for the same exact food I've always been getting. $480 more per year I pay at costco alone, yet alone everything else I buy including gas, heat, and when I eat out.

I won't be getting a big enough tax cut to adjust my losses from inflation.

Kizzume · Posted: Tue Jan 22, 2008 2:47 pm Post subject:

Well, when it comes to businesses, these kinds of tax cuts would be a big thing.

What I'm worried about as far as the democrats, is that they may decide to not actually push forth an answer until near the end of the year or something--that they'll wait to do something about this serious problem.

jq · Joined: 02 Dec 2007 Posts: 1124

Oh believe me, inflation effects businesses. In fact, it effects them the most!

Every time food prices go up, a retailer has two choices. THey can eitehr take a reduced profit margin-- which isn't good for business-- or the can raise the prices of their food-- which isn't good for business.

Why do you think McDonalds started pushing the 4 piece chicken nuggets for $1 so vigilantely? Maybe because beef prices keep rising, and while htey don't want to take the double cheeseburger off the dollar menu and get bad press, they are also aware that it is losing them money.

Trucking businesses are going OUT of business because of inflation. It is too costly to fuel the trucks!

Believe me, inflation is very damaging to businesses, too.

chuq · Joined: 04 Dec 2007 Posts: 135 Location: Gulf South