Really??? That's the proposed solution? Put the entire Country on welfare for a day? What "economists" are actually putting their names on this one? Who out there will stand up and say 1 day of free money is going to move this economy?
That's like squeezing a drop of red food dye into a lake and expecting it to turn the lake red!
Crazy talk! Not only is the amount not enough to make any difference whatsoever, the entire notion goes against everything anyone has ever been taught about a free market.
Imagine you are a straight A student in high school and many of your classmates are flunking out. You feel bad for them but hey, you paid attention in class, did the homework and they did NOT. One day your teacher announces that since so many kids are failing, she is going to give everyone in the class an A for today's homework. You would be outraged on several levels!!
For one, you worked hard and sacrificed so you could earn good grades while others chose to skip studying and instead went to the mall. Additionally, an A for one assignment when averaged into the hundreds of assignments which will be given out this year, will not make any real change in a failing students grades!
My point? (As if it isn't obvious) MANY Americans have worked hard and sacrificed so they could avoid a recession in their households while other families chose to go to the mall! (Live beyond their means) And now government wants to hand out free money to everyone who did not prepare for a day like this. And the amount is not going to move the needle on the recession scale at all!
Troy Prediction: For a day or two at the most, the amateurs in the stock market will prop the market up with bizarre, emotional buying and then as news breaks that the "economic stimulus" is having no real effect, the markets will tumble, eating up all previous gains from the "economic stimulus".
Furthermore, people receiving the check will not react as government would have predicted- the money will be tucked away by many (defeating the purpose) and for those who truly need the cash, it will be spent on items such as food and fuel, which are two areas of the economy NOT needing any stimulus. Sure, a few flat screen TVs will be sold, but when the dust settles and the money is spent, we will all be meeting right back here exactly where we were BEFORE the economic stimulus and will then need to actually deal with it. (If you want to see how to actually fix the economy, read my previous post titled "Recession, so what".
Troy Dunn's Advice For Those Getting A Free Money Check: "Use it to pay your bankruptcy
lawyer."
People, all you need to do from this moment forward is LIVE BENEATH YOUR MEANS. Enjoy life, run from debt and stop trying to keep up with the Jones because the Jones are BROKE!
Troy Dunn
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