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The second stimulus package popular among many in Washington
The idea of a second round of economic stimulus checks being sent out sometime this fall or next spring has been gaining steam in the hallowed halls of Congress. It has been mentioned by a number of Democrats including House speaker Nancy Pelosi, as well as other prominent politicians from both sides of the aisle. Pelosi talked about the first rebate, and the possibility of a second just last week:
“The rebates had “a positive effect,” Pelosi added, “except they have been offset, as has been said by our experts, by the rising costs in other necessities for the American people. So while they may have saved the second quarter from a technical definition of a recession, the fact is that we are into a third quarter and we need to have another stimulus package.“
photo credit: Will Palmer
For the politicians a second round of stimulus payments are a no brainer. In an election year like this the pols are looking for just about any way they can to sway the voters. Giving their constituents money seems to be a great way to do that.
Even if a second round of checks is passed, it sounds like it probably won’t happen until fall at the earliest:
Harry Reid of Nevada, said it would be “really hard” to get a package put together before the August recess, indicating that the issue was unlikely to gain momentum before the fall.
Today Barack Obama continued his pledge for a second round of stimulus payments if he is elected:
Obama said the economy needs both short- and long-term fixes, including another round of “stimulus” measures from Congress to revive the economy and a longer-term focus on renewable energy to curb high gas prices and on universal health care to trim costs. He said he would move “rapidly and vigorously” to respond.
So even if we get a second check, it probably isn’t going to happen for a while. So don’t count on that extra income in your budget! Check out my article for some ways to create your own “stimulus income“.
First check – just not enough? Will a second stimulus be more effective?
The first check doesn’t seem to have had enough of an effect, and any positive effects that they did have seem to have been offset by rising gas prices, food prices and prices of other essentials.
From what I’ve read around the blogosphere it also seems that a lot of people didn’t spend their first rebates. A creditcards.com poll conducted March 7-9 by GfK Roper Public Affairs and Media found:
half of Americans don’t have spending in mind, with 26 percent saying they’ll pay off some debt, and 24 percent planning to save it.
So a quarter said that they planned to save their stimulus payment, and another quarter said they would use it to pay off debt. Not exactly the outcome that the government had hoped for.
Would people be more likely to spend a second round of stimulus checks? My guess is that more people probably would spend it. The fact that they’ve already used one payment to pay off debt or save means that a lot of people will feel like they “deserve” to spend their second check. I think you would see much higher numbers of people actually spending their stimulus checks the second time around.
Is a second round of checks a good idea?
Is it a good idea to continue doling out checks until the economy picks back up? Or would it be better to just let the market correct itself, even if it means a bit of pain in the short term? I’d love to hear your feedback on the topic.
Personally I’m of the opinion that the stimulus checks are more smoke and mirrors than actual solid economic policy. I can’t see these checks having an appreciable effect. I’d rather see a cut in taxes, help for those that are creating jobs, and progress on new drilling for oil to help reduce gas prices. An increased focus on other sources of renewable energy would be a good step as well.
What would you do with a second economic stimulus check?
If a second stimulus package does materialize this fall, what will you do with your check? Will you:
- Spend it (like they want you to)?
- Save it
- Use it to pay down debt?
- Donate the money?
Let us know what action you’ll take if you get a second check – in the comments below!
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I would save it- just like we did the last one.
Melissa, Multitasking Mamas last blog post..Identifying Time Wasters
I would absolutely spend it. Especially if I receive it around the holidays. My last check went to bills. I feel I deserve a little bit of spending money.
i would spend it.especially if i got it before the holidays.
My husband and I have been using all our money to pay bills. I have a 2 year old and a baby on the way. I don’t know what we are going to do with it being so bad. If we get another check it will help us out so much just to catch up and be ready for our new baby boy! Also give my daughter a wonderful x-mas.
I would definitely have to use it. I still have children living at home and I would use it to pay bills and for the holidays. I have to give to single moms or dads. My husband works all the time and I just recieved a job from a friend. But I am still trying to catch up my bills from August so yes bring on a second stimulus check.
Thank You
I would use it to pay bills an buy x-mas persents for my family. We could really use another one.
I would keep the second check just like the first one because $600 isn’t that much money to make a difference to the damage that has already been done to rising costs. The second check couldn’t come fast enough for me. It looks like x-mas gifts are going to be very short this year.
I would spend it. I get irritated b/c everyone against it says “I just saved it anyway so they don’t stimulate the economy”
Well, excuse me, but not all of us can “save it.”
I spent the last one and this one will get spent too.
This is the hardest time I ever had and I can think of 10 things to spend it on.
Getting it before Christmas would be nice b/c then I could buy presents.
If not, well, it will be spent on things we need ourselves.
Things are horrible now.
I am college educated but cannot even find a waitress job the last few months.
Yes, I agree not all of us can save the check.I
don’t really need to borrow money, I need money to
help pay what I now owe. I’m not looking for more
debt. If they give us money,(not chicken change)we can help put more money in circulation.
You know, It seems to me that those people that already have enough money and dont need it anway will find it much easier to say that we shouldn’t get it, without thinking about the reasons in which the ones that do need it & should get it to make ends meet,in other words not everybody should get,but only the ones that will actually appeciate it.
I think it would help a great deal honestly. I know there are people who are saying no. But the people who are saying no aren’t the ones who need the money as bad as those of us who really need it. It’s not even a thing of greed, with prices going up. Anything our way helps abit.
I will spend my rebate check on paying off debt. I got engaged a month before I was laid off work with no chance of return from DHL and I just took out a student loan to go back to school. If the Govt. wants money to go back into the economy they need to give a larger check.
I’d tithe to our church and put the rest towards debt. As for it being a good idea, no, it’s just more spending that the gov’t can’t afford. I’m also of the opinion that taxes need to be lowered, but I don’t really see that happening, no matter who becomes president.
Depending on how much it actually would be and when we would get it – we’d either save it to get our emergency fund up to snuff or use it to pay down college loans.
I’m never one to complain about free money, but I also like the idea of letting the market work for itself.
Not knowing exactly what it would look like it is hard to say. It seems like there might be other things that could be done – but they probably aren’t as politically expedient.
Besides if they keep giving us money – where is it coming from? Why not use the money to shore up the value of the dollar by getting rid of some of the national deficit?
crossn81s last blog post..Beauty of Africa
I think a second round check is purely a political move…especially since Obama and the lead democrats are chiming in about it. I trult believe it is a waste of money…I really don’t feel it is the role of the government.
For me, I will be using it to pay down the car loan or putting part away for 2009 vacation fund.
Tims last blog post..Daddy’s girls..riding horsey!
We did spend a portion of the last check (which was a stupid idea…but we had great jobs at the time). This time around we would definitely put it in our emergency fund.
I also agree with tax cuts, but that is unlikely in my opinion. I am glad that some are focusing on renewable energy sources for relief, though that will be years down the road given the current progress.
We are headed toward a recession regardless of these checks. It took years for us to get into this position and it is silly to assume that a “quick fix” will undo all the damage. The market will rebound, it always does…but is somewhat scary to think about what could happen before that. My husband studied political science and feels we may be headed for a depressions should the government not begin to focus on long-term programs and policies.
Brianah Dodsons last blog post..Seasonal Change
See-this is what our fiscally responsible govt was worried about the first time – all of you “irresponsible” people saving the money or paying down debt instead of rushing out to buy huge HDTVs. Shessh.
As for us, the first one came just at the time we were redoing our back porch, so I guess it technically got spent on that. Woohoo – I’m patriotic!
I spent the first one on a breakfast set that we were planning on getting anyway and I would spend the next if we get one on bills and household things.
First, i would thank God like i always does and i will appreciate the people in The White House who agreed that we need another stimulus check and I want to enjoy this x-mas with my 15 months old daughter. I want to appreciate eveyone especially our New President.
I think talk of a second package is all politics right now. It takes a long time to really see statistically if these packages work. Heck, we don’t even know if we’re in a recession yet! Reminds me of a campaign promise from the first GB – “Read my lips – No new taxes!” It’s all talk right now.
I would save it, same as we did with our last ones.
I know this isn’t really a good thing (for the spenders), but our CafePress store sales escalated 2-3 times during the months of May and June… so the first round of stimulus checks benefited us in more than one way.
And I guess, by July the checks were spent so sales slowed back down. So I wouldn’t mind a second check…
I receive SSI and don’t pay taxes so I don’t qualify for the stimulus checks.
yes you do
Yes you do! FILE anyway, my brother is on Social Security disablement and gets about 14,000 a year I filed for him and he got the money. You still have time to file in fact go to your town hall they do taxes for people on social security and disable people for free. Get that extra money. Do it before the 2nd check goes out! As from what I hear who got the first will automatically get the second without filing anything again. Enjoy the money!
You do not qualify for the stimulus if you are on ssi because you don’t receive a 1099 form,I know because I was on it and I did some calling around when I didn’t receive a stimulus paper,most ppl on ssi make the least and of course we were the ones that got screwed!!!
No Truer words have been spoken.
of course the package really did not work.. after all it’s only a buck64aday if you got 600 dollars. really how is that going to work out in the long run.
in the short run of course there will be a boost as everyone spends their free money. what about december, when inflation and christmas collide?
i have been blogging about this ever since i got my check.
take a look at http://www.buck64aday.com
peder hollinghursts last blog post..day 63-cleaning the air, or … hot damn i have spent over a hundred dollars.
Well, we took the entire check last time and paid off consumer debt. Oh, it felt so good!
So… if we do get another, I would love to pay off more debt (the car) and tithe.
Alyssa @ Keeping the Kingdom Firsts last blog post..Coupon Binder Show & Tell!
I know I will never receive one (currently in Philippines) but I’d rather invest it or put it into my retirement fund.
Sams last blog post..Striking a balance between lifestyle and finances
Do you have a hidden nest egg somewhere?
We paid off debt the first one, it was enough to get us back on our feet. But currently, we only have social security disability as an income (from me) and believe me, it’s definitely a struggle for a family of 3! Husband lost his job and is going to college this fall to try to get a job in something eventually. So IF we did get another check, it’d be put into savings for when there’s an emergency. (Or, my husband thinks we should invest in another vehicle so we’re not fighting over who keeps the car when he starts college… hmmm…) Just wants and needs hun!
@ Kendra – Wow, that’s a tough situation, I feel for you. I don’t know if I’d be buying another car in your situation, unless it was a bit of a beater – something you could pay off right away. I wouldn’t want to get into another payment when you have the one income, and school bills to pay! (Maybe i’m speaking to the choir on this one?) How about your husband getting a job, and then saving up for tuition/books? (sorry, maybe I’m chiming in when no advice was asked for?)
Firstly I think a second stimulus package is a good idea, regardless if it’s being done for political reasons or not.
It’s been proven several times that it does help the economy somewhat, and I think the first check did help from making things a lot worse.
Having said that it’s important our political leaders become fiscally accountable. The amount of wasteful spending in our government has gotten totally out of control. Both parties are catering to special interest groups that benefit them at the expense of everyone else.
We as individuals needs to increase our financial IQ so that we can stop depending on our government.
Regards
Ray
Ray Romans last blog post..Cheap Things to Do in NYC
@ Ray Roman – I have to agree, we do need our political leaders to become more fiscally responsible and accountable. Wasteful spending in government is a huge problem – and everyone has their little pet pork projects..
Time for us to implement financial classes for kids in high school to help break the cycle of people being uneducated about their own money.
we plan to save half and use the other half for bills just like the first check. With the rising cost of home heating oil we may even just get our oil tank filled to offset winter. Sadly there will be little to nothing fun bought with our money like the govenment wants. Now if they can find a permanent way of bringing down the cost of living or upping pay rates then we are going on a nice vacation with it or blow it on the downpayment for a home theater system or something crazy.
pay tithe and offering first then go on a shopping spree for me and my son
I splurged on the first check, Hey, i didnt even know i was getting one until i saw the money in my account. I didnt get the letter saying that i was gonna get one until after i had already spent it. Im only 23 and dont have any major responsibilties right now, so i gave my mom the majority of it and paid for my cousins prom dress, the rest of it i used to get a new tattoo. I know that sounds irresponsible, but im young and i never do anything for myself anyway so i had fun with the money, plus like i said i wasnt expecting it so it was like finding money in the street.
They say that democracy begins to break down once the people realize that they can vote to give themselves money. Instead of giving us back our own money, how about the government doesn’t take so much from us in the first place?
If they keep handing out ‘free’ money that’s just going to lower the value of the currency. If everyone was a millionaire then a million bucks wouldn’t buy much…
I would use the 2nd check for my kids xmas gifts. I am already having a hard time with food and gas just to get to work and I work far. So I need a car. My 2 teenagers are having a hard time and scared we will have no xmas. All they want is a tree and 1 gift each. I am a middle class woman making ends meet. Please give us a stimulis check before xmas. We can careless about the spring cause that is when we get our tax money anyways.
i would also use this 2nd check for my teenage boys xmas.like a lot of people we spent the last one like crazy. my husband works for the wind farm projects but right now they are slow,cause its election year i guess.but yeah i would spend it on xmas and maybe put some up for a summer trip.
I agree with you being a single mom of 3 teeenagers myself they are worries that we will not have a x-mas either so getting a second check right now would be great I would definetly spend it on x-mas
Depending on the amount, i would save some, spend some and pay down some debt. Clear and simple. And as for what I think of the idea. I think it is needed by many americans including myself. There are a lot of hungry kids out there and I used to be one of them. REBATE! REBATE! REBATE!
I think a second round of checks would be great. All you people that can pay off debut it must be nice. I wish we could do that. We spent our first check on things we needed, food, gas clothes for the kids diaper and so on. You also paid things like rent and elecrtic bills. It is hard to make it now in days with just my husband being able to work and having two kids. We can’t afford the daycare prices for me to go back to work. It would be point less. There are alot of families out there that need the help more then others. So I think the second around of checks is a good idea.
I think giving a second check would be a great help for low income people like myself.If there was a second check sent to me, I would buy extra groceries, clothes, and things that my three children could use for school. If I have something left over I would put it in a savings account for my children.
My husband and I originally planned on saving our check, but due to the economy his employer let several hundred people go. We ended up spending it on bills, gas, and food until he could get another job. I don’t know what we would have done without it. God was looking of us because that check came at the right time.
We have discussed the possibility of receiving another check. We decided to pay off any debts just in case anything happens, and whatever is left over we will save.
i would spend it like you want me to.that is the idea i think with the hoildays comeing people will spend it if its done in the fall that is a good time. plese do people do not have money for the hoildays that would be nice.
I think that getting another stimulus check would help boost the economy, since the first checks were used basically to pay down bills or other debts.And maybe this time more people would spend the second just enjoying themselves and especially since the holidays will be approaching soon.So as far as me and my family I think we would enjoy every bit this time.
From the responses I’m getting I think that a lot more people would be apt to spend the stimulus check a second time around. So – in that respect I think it probably would help more the second time around. I’m still not convinced that this would be the best thing for the economy though.
I don’t understand how you can think that it will boost the economy?! They say that we are suppose to spend this money to boost the economy, but there is NO MONEY! So we get checks from our government. Has everyone forgot how many trillions of dollars our government is in debt. That means, there is NO MONEY there! NO CASH! Just a piece of paper with a dollar amount, that we are to cash at our banks. Of course the banks are going to cash them because they are from the government. Then everyone wonders why there are banks, and insurance agencies having to be bailed out. They give us the money but are NOT recieving the money from the government, because our government is BROKE!
I believe if we got it around christmas time at least 80% would be spent on christmas gifts.
I agree. Christmas would be best. They need to get this on a roll if they want to do it so that it will be used they way they want it used.
We hear all this talk as to what “means” the second stimulus package could actually produce, well the truth of the matter is that everybody’s financial situation is a case by case sceanario. Everyone decides what needs are most important based on their own economic perception. I conclude by saying that….”what may benefit some may not benefit you”
Our money has been so tight we have barely made ends met. We hadn’t been on a family vacation for 10 years. We used the stimulus money on a family vacation and enjoyed spending that quality time together, away from work and every day stress. When you live pay check to pay check there is so much stress in you life. It felt so great so have that time together and to have some relaxation that was greatly needed. Now that Christmas is coming up that second stimulus check would be put to great use. My son is 18 and planning on going to college. I would probably use part for Christmas gifts, bills and to help out with my son’s Senior year in high school, graduation announcements, etc. So I say yes to the second stimulus check.
I think that a second check would help the economy alot. for one thing it would help the people for the gas prices and it would also help for the holiday season. I think if there is no second check that all of the retail stores will fell the hurt. I know I would for there is only one income in my home for the jobs in wisconsin are not good for everytime you turn around there is another plant or so closing and people are just having a hard time keeping up with things. Just like the housing market I feel if the banks dont want to work with the people to help with the payments then the bank should get stuck with the house. I feel the banks are just greedy. that is why we are in the mess we are in. banks should either let you finace or pay on the principal or the interest until we get out of this mess. Jobs going over seas is the main issue. you should start having a tax to bring it back into the US if you want to go over seas then you pay to bring it back in. Maybe then companies will think twice about pulling the job market here in the US. So yes another stimulas check is a good idea for the economy thank you barb
I think a second round of checks is a good idea. With the price of everything my family is barley making it. I wish I could have just saved our first check like most of you did but when you have a family of 4 on one income its kinda of hard to do that. We spent ours on food, clothes for the kids and things that we needed. I think coime christmas time there are going to be a lot of families that can not buy their kids anything. I do not care if it is a poltical thing it helped us out abunch and i do hope we get another one so my kids can have a merry christmas this year!
I would do what I did the last time…pay off a bill, fix my cars, buy groceries for the family, then put the rest in a CD account. I got a nice check last time around so I would hope for the same.
But I honestly think that in someway we all will be paying these checks back. I would assume that it would go on my taxes as additional income and I will be put in a higher tax. It would be nice if the gov’t would just give us funds quartly and or give families more access to food aid utility aid etc. I am a single mommy (not by choice, due to death of my spouse) I work hard to keep food shelter and stuff like that. I look forward to something happening very soon…or all of us will be at the welfare office getting help because getting to our full time jobs are making us broke.
I know that having another stim would work great for alot of folks, especially like a single working mother of two kids trying to survive on a income of one.It would be nice if they decide to have one around the same time every year to help eveyone out.
If we got a second stimulus check we would use if for christmas shopping.
I would use it to pay my bills justlike i received the first check i was apayment behind onmy house and barely making my bills. itis hard to eat, gotowork, fuel prices and food prices do i pay bills or buy the needs. hard decision.
I am a single mother, and I have a 11 year old son.When I got the first check,I SPENT IT ON BILLS,BILLS,BILLS.aS WE ALL KNOW,Christmas is right around the corner.I hardly ever have the amount of money that ,I COULD USE FOR CHRISTMAS.I SAY,yES ,yES ,SEND THAT SECOND STIMULUS CHECK ON .
I agree. We need another stimulus check. A lot of the people responding must not be struggling.
I am. I am a single mom. I am also a full time student. I work part time. It just isn’t enough to get by. You should see my electric bill in the winter. Gas prices through the electric company go up tremondously every year. It’s ridiculous and I would not be too proud to take the help.
IM DISABLE AND BEHIND ON BILLS
I think that a stimulus check is much needed at this time. Christmas time is just around the bend and so many people donot have jobs. It would allow so many to buy for their little ones. It would also allow some ease on our minds to the economy some will pay bills and fall would be a great time for it to be sent out. I am a single person and it would be of much needed at this time.So YES YES YES TO A SECOND STIMULUS!!!!
Well the first one I took my kids out and bought them so much stuff and most likely ill do the same ILL SPEND IT!!!!!!!!!!!!!!!!
I would spend spend and save alittle this time if I got another stimulus check. I was on short-term disability for the first one so I had to spend it on the C.O.L(cost of living) but we would have a very nice x-mas if Uncle Sam wants to be generous
I think that the idea of a second check is rediculous. I mean, they want to get the economy back in order, but yet the dems are wanting to spend more money our government doesn’t have, but yet they expect the rest of us to be so blind, brainwashed and nieve that we don’t see that and welcome the money with open arms.
What would we do with the money? Same thing we did with the 1st one. We paid off the little bills that we did have and saved the rest. Though now we don’t really have any unpaid bills, so then we would save it, probably in our childrens college fund.
Well good for you if your bills are paid. You may sell drugs or something.
Yeah, I would probably spend it on paying down my bills. I am not fortunate enough to have a 50K a year job, nor do I have children or anything. I am a single 30 year old male who is struggling in this economy just to make ends meet. For me this would be welcome, even though I know that our government is TRILLIONS in debt. I think the first thing our government needs to do is to stop giving aid to other countries for a while. At least, only to those that truly need the aid should get some help. We need to focus on our own country, our own soil for once.
I think I would use it to get caught up on bills because my husband and I both only have part-time jobs. We just can’t catch a break. And thought I don’t think a second stimulus check would boost the economy, at this point, I don’t care. I’m just trying to keep my kids fed and clothed and I would like a little bit of gas in my car so that I can continue getting to work.
I am a working mother and have a 4 yr old daughter..I have a part time job which barely gets us by. My fiance works at the same place as I and even though we both have income, it just isn’t enough. I can’t go out to look for a better job being that this job is in walking distance. GAS IS TOO HIGH! I would use this money to buy christmas gifts for my daughter….I worry that I won’t have the money to keep up on the bills and get gifts at the same time. I would also like to add a little comment that welfare really isn’t fair in the means that,people who really need help don’t get it…and people who can work just sit on their a** and get all these benefits for free!!! WE NEED SOME HELP HERE!!!! Another check would help a great deal!
Well, I think a second one would be great. As a mother of 5 ,I would spend the money on them or christmas gifts. Also depending on how much it is i would also pay off some debit. Maybe spend some of it on my self. So i think the idea is great many americans are in a bind and we all need and what good things.
I lost the 1st check to my student loan repayment. If I get another stimulus check, and it’s BEFORE Christmas, I will most likely spend it to help with Christmas expenses. If it doesn’t come until after Christmas, I’ll probably save half and pay down some debt with the other half.
I would pay on a credit card, because we have had to subsadize our income somehow. And as dumb as it is to do it with a credit card. Not alot of options out there. EVERYTHING COSTS MORE!!!
I think it would be a good idea. I am a single mother of 2 and I can barely take care of them with the one income that I got. I need it cause even though I work a full time job it is just not enough. I was just in Hurricane I and lost work and could not even that time or money back so that just put me in more debt then I was already in. So I think that the government need to help us as much as possible.
I think that a second stimulus check would help me because I am a single mother of two who work 40 hours plus just to make ends meet.
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