I thought that talks of a second stimulus check for Americans had been tabled due to recent economic woes, but today I read that once again another stimulus check is being considered.
Here’s what they’re saying:
Momentum is building for a fresh dose of economic stimulants to boost the country out of the doldrums — perhaps by putting more money in Americans’ pockets. The White House said Friday that President Bush was open to some sort of action after Federal Reserve Chairman Ben Bernanke warned the slump could drag on without the extra bracing tonic.
“We’re continuing to have conversations with members of Congress, and we’re open to ideas that they would put forward … that would stimulate the economy and help us pull out of this downturn faster,” White House press secretary Dana Perino said around noon Friday, shortly after Bernanke endorsed the need for a fresh and “significant” round of government action.
A couple of hours later, Bush seconded those remarks, but he also said in a more optimistic tone: “I have heard that people’s attitudes are beginning to change from a period of intense concerns — I would call it near panic — to being more relaxed.” He commented after a closed meeting with business leaders in Alexandria, La.
If congressional leaders and Bush — who has been cool to more federal stimulus spending given already exploding budget deficits — were to hash out an acceptable package, it would require a special session after the Nov. 4 elections.
If an agreement can’t be worked out, the effort probably would be taken up by the next Congress and the next president. Democrat Barack Obama has strongly advocated more government stimulus, while Republican John McCain is keeping his options open.
People Counting On A Stimulus Check
I know from the searches and number of comments that this blog has generated from posts about stimulus checks that a lot of people are wondering if they can count on another stimulus check this year. A lot of people are counting on a check to make sure Christmas comes for their family.
I will tell you right now, I wouldn’t count on it. When you get your hopes up for government help, and keep looking to the politicos to give your pocketbook a bump, you’ll never get ahead. The politicians will find new ways to disappoint.
Out Of Control Spending
They’ll give a stimulus check with one hand, and raise your taxes with the other.
House Speaker Nancy Pelosi of California and fellow congressional Democrats are pushing a package that could cost as much as $150 billion. Some economists, however, have advised them in recent days that to have a real impact, the total would have to be far larger, as much as $300 billion.
As part of that package, Democrats want to resurrect a $61 billion House-passed measure that included about $37 billion in public works spending, $6 billion to extend jobless benefits, $15 billion to help states to pay their Medicaid bills and $3 billion in food stamp assistance for the poor.
The Democrats also are considering a second round of tax rebates to follow the $600 to $1,200 checks most individuals and couples got earlier this year. That money, going directly to consumers in hopes they would spend it, could push the price tag much higher.
The price tags keep getting higher and higher. $150 billion turns into $300 billion. Tack on another $60 billion for public works, jobless benefits and other government programs. But hey, we’ll get a $600 check – so it’s all ok, right?
Where does it end?
What do you think of another stimulus package? Is it a good idea? Should it include stimulus checks to taxpayers?
I agree with you, Larry and Karen. Throwing money at problems doesn’t usually work. It just makes things more expensive. We really do need to shift away from the debt based economy we have become and get back to an economy based on the basics of prudent financial decision making.
amen.
With a negative savings rate in the U.S., the last thing we need is a stimulus check. What we need is an attitude shift about spending money– learning to cut back and do without.
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I agree, we really need to adjust our attitudes about money, from one of reliance on credit – to one of saving, thrift and responsibility. A check won’t help do that.
I agree with your assessment. I don’t think that more government spending and stimulus checks are going to get us out of this mess. You’re right, where does this all end!? Unfortunately, if the government just starts printing more money to cover all these expenses, it’s going to lead to higher inflation, and then we’re all paying more for everything. The stimulus check becomes null and void at that point.
I want a president who will turn to Dave Ramsey and Crown Financial as their economic advisors!
Larry Joness last blog post..Leap of Faith
Naturally anyone with a jobs ofof my own of would not need a stimulous infusion as much as a person un employed an jobs not available and bills continue to come at your door step me personally until one year ago i never missed a pay check in 50 years
There is plenty of accumulated money out there to spend. The savers have it, the spenders don’t. The spenders helped put us where we are now. Why reward that behavior? If money needs to be spent to stimulate the economy, let the government spend it on energy R&D and alternative energy infrastructure.
I talk about this on my blog, it is no surprise people are wanting the stimulus package but really we have to hit rock bottom before we can even stimulate the economy. we haven’t yet hit it through!!!
Foreign ownership of the national debt is as of July 2008 $2.7 trillion. The balance is held by Intragovernmental Holdings and Debt Held by the Public. Where does the money for all these bailouts and stimulus program come from?
i think a second stimulus would be good just before
the holidays it is almost a garenty that the money would be put back in the econemy not like the first one people will spend around the holiday. i am use to the saying that the richer get richer and the poorer get poorer
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Whatever action the government takes, will be largely independent of all of our opinions of “what they should do”.
Since their decision is an uncontrollable, let’s have the serenity to change the things that we can control.
The only thing we have direct control over is our own personal finances. So let’s put some of our energy into developing our own finances instead of just worrying about the state of the entire economy or what the government will do.
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i also think a 2nd check would be really great. being that it is right here at christmas time. i have 2 kids and they would sure banefit from this i also have a big family that i have to buy for. and the way things are going up my christmas was gonna be slim and i would have to cut on gift prices. but my question would be would we really have enough time to get this check before christmas since it is so close.
I saw your tweet on this. I read earlier a post on the same subject from @taxgirl on twitter. think her site is http://www.taxgirl.com
I would like one, and hope it does materialize. We are happy to be getting 5.8% cost of living increase on Jan 1st with SSI checks. For most seniors and those who are disabled the increase amounts to $60 more per month.
I just got done reading on another article about the second stimulus check, and they said that they might put those in unemployment benefits and foodstamps? I don’t think so. I’d rather get a check than giving it to someone that is depending on foodstamps and people that are depending on unemployment check! If they really want to feed their family, get out there and get a job. And stop having kids.
I think this is a bad idea all around. I don’t want higher taxes, and another check is only going to be saved or put to debt like the last one.