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Your Take: Would You Spend A Stimulus Package?

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There’s talk of an economic stimulus package that may involve some funds going back to low and middle income Americans in the hopes that they’ll spend it, boost the economy, and make everyone who watches stock tickers sleep a little easier at night. Matt Lauer interviewed Henry Paulson, the US Treasury Secretary, on the Today show and discussed the potential stimulus package and brought up a very good point. He brought up a quote in the Wall Street Journal about how the last time this tactic was tried, back in 2001, many low and middle income Americans saved their check from the government and didn’t spend it. (wsj blog article discussing this idea)

That’s what people do, they spend in times of prosperity and save in times of crisis. With the stock market taking a pounding, with the billions in bank write offs, with the sub-prime news, and all the talk of a recession – whether we’re actually in a time of economic crisis or not, people think we’re in a time of economic crisis so I’m inclined to believe they’ll save any money the government decides to dole out.

(As an aside, I love how we’re always going back to Reaganomics and supply-side economics, which was really the last time we truly battle a long period of economic slowdowns, in that case it was stagflation caused in part by oil prices. Tax cuts plus deficit spending… how much longer can we be ripping the golden eggs out of the golden goose before the poor thing dies and China stops buying T-bills?)

So my question to you is, if you got money as a result of the stimulus package, would you spend it or save it?

{ 76 comments, please add your thoughts now! }

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76 Responses to “Your Take: Would You Spend A Stimulus Package?”

  1. Rob Carlson says:

    Last time I got a tax rebate I split it down the middle between contributions to the American Civil Liberties Union and the Electronic Privacy Information Center. Maybe I didn’t help the economy, but it sure as hell helped the United States.

  2. Posco says:

    I’m a graduate student basically living off savings and loans. So any windfall will get spent. On rent. And on groceries. Which results in less sell-off of my stocks and less begging to Mom. So much for my contribution to the economy.

  3. fandd says:

    I spent the last rebate, but that was before I was paying attention to my finances. This time, I would stash it in my on-line, high-interest savings account where it would be harder to get to.

  4. i’ll probably end up saving a good bit of it . . . but remember that we as americans are terrible savers, so on the whole, i’d bank that most, if not all (or more likely more than all — in the form of debt) will go directly into the economy.

  5. Jason says:

    I wouldn’t, but you know most of America would spend the “free money”.

  6. MoneyNing says:

    When there is fear of a recession, people who get money will save it. This is because people are afraid to lose their job. I can’t believe this is the package that the government came up with.

  7. saladdin says:

    Booze and women.

    saladdin

  8. Bill says:

    It would seem that seniors would spend the money most.

  9. bryan says:

    id buy chinese-made goods

  10. Tommy says:

    Save it. Thank you Mr. Bush, one can never have enough rainy day funds these days.

  11. Meg says:

    I’d spend half of it just to be patriotic. Then I’d save the rest.

  12. john says:

    Buy something made in the USA!!

    wwwDOTusstuffDOTcom

  13. I wouldn’t go out and spend it on purpose. I’d probably invest it in the stock market, hoping that this recession were in will eventually end and the value of my stocks will go up. I might buy a few more things… or at least, I’d spend normally compared to thinking that I was going to be drastically effected by the recession (job loss, etc).

  14. Christopher Andrew Steele says:

    I’m already planning a trip to Europe this summer that I was going to pay for out of savings. How does using this instead of tapping that count? I’m one plane ticket away. Andiamo!

  15. Christine McWilliams says:

    ok….under normal circumstances, I am on of those people who would save it! But I have a daughter going to college in the fall so, I would buy her a laptop with the money, and try to help our economy get out of the trouble the its in, normally I would have waited but because I know what I want it for then I would buy it now!

  16. Christine McWilliams says:

    ok….under normal circumstances, I am on of those people who would save it! But I have a daughter going to college in the fall so, I would buy her a laptop with the money, and try to help our economy get out of the trouble its in, normally I would have waited but because I know what I want it for then I would buy it now!

  17. P. Mitsos says:

    Reagonomics was the absolute WORST policy that ever hit this country. He rang up the largest deficits we’ve ever had to endure, until, of course, the current bozo occupying the White House has done.

    No, supply economics completely sucks, in a word. I would use my pitiful rebate check to pay part of a credit card down.

  18. JB says:

    I’d put it in my ROTH or savings. Would not spend it at all.

  19. Laura says:

    Most likely, my husband and I would put that extra money towards paying off my car loan early. If the estimates are right, then by June, we’ll have paid off the car. The car payments would then be directed towards our joint savings account.

  20. paul in stl says:

    buy a bunch of Levi jeans to sell to foreigners online.

    Then I’d take that money and put it towards an awesome refinance.

  21. David says:

    There should be no rebate for several reasons. First, those individuals like me that worked their butts off to earn a good living, even if it is close to 6 digits pay the highest taxes for the same rights and benefits as everyone else. You earn a medium or low-income? Then get a new job or a new career, It’s not my fault that I make more money and yes, we are being discriminated against, always.

    Second, if you want to stimulate the economy, then cut the tax rate so that people have more to spend.

    Third, you want to fix the problem? Then get rid of all the current tax rules and implement a flat tax of 17% FOR EVEYONE, regardless of race, creed, or color, or income!

  22. hawaiilady says:

    I think all these people are idiots. I cant believe you are against this Stimulus Plan! Just let them help our economy. I cant believe that your all saying you’ll save the money:( your suppose to spend it and help our world be a better place! If you were to die tommorrow, I sure hope you can take that money with you. Stop thinking about yourselves and do something for your country like all our men and women in Irag fighting for our freedom. Your answers and comments just make me so upset! This is why were in so much trouble.

  23. hawaiilady says:

    Im sorry to be irrate but I need to get my feeling sout to the US

  24. mango says:

    This is mostly directed at hawai8ilady. You are brainwashed. Why do I need to spend this money?(your quote, “You are supposed to spend this money”) Do you realize that this is OUR money they are giving you, and that this package increased out deficit? A deficit that will follow our children for years. No, I don’t want this stimulus package. It is only a bandaid. No matter how much we don’t like to hear it, we NEED TO STOP SPENDING MONEY WE DON’T HAVE. Economics 101. Want to stimulate our economy, get the hell out of Iraq where we are spending trillons of dollars. We might as well build a bonfire in our backyards and burn the money there for all the good we have done in Iraq. What a sad, sad situation for all the hard working Americans.

  25. silky says:

    I am going to spend mine on the increased interest on my mortgage as this is causing rates to rise. It should cover the increase for about a month!


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