Will the (Free) Money Really Stimulate the Economy?

Yesterday I was going through my mail and got a notice from the IRS. The first thought that crossed my mind was that I was getting audited…no big deal but kind of a pain in the ass. Upon opening the envelope, I discovered that it was a notification that I was going to be getting some “free” money in May. The average amount, providing you make less than $75,000, will be $600.00 with additional amounts for each qualifying child. I look at my boyfriend and say WHAT THE HELL IS THIS????? Now my man, being very on top of current events (i.e. not in his own little world like I am) said I thought you already knew what Bush did. Well, to be honest, I had overheard a discussion in the lunch room here at the office, but like I said, I don’t pay too much attention to things like that, or hope in things like that, probably because I’m too busy making money on my own (i.e. I do not suffer from “what can I get for free” syndrome). Anyway, he tells me this and my face must have shown disbelief because he reminded me that this isn’t the first time the leader of the free world has done this.

What I feel is very important to stress is that yes, I was in utter disbelief. No, not because oh hey the majority of the country is getting free money, with the only qualification being that you have to have earned a minimum of $3,000 and a maximum of $75,000 (for singles - $150,000 for married couples). See here. The reason that I am in utter disbelief is because if we already don't have any money (yes, we’re borrowing money from other countries to pay for this war), how can we afford to give this early tax rebate? Especially since most of us have filed our taxes already and received our rebates or paid what we owe. Oh, but wait, it’s in the budget. The budget. Right. Oh, and it’s supposed to stimulate the economy. Right. Well, I'm not the only one who thinks that won't solve the problem of our bad ecomony.

I personally believe it’s a temporary solution to a problem. I mean, if you need stitches, will putting a band-aid on it really work? No, of course not. Our economy is in such bad shape now because of the housing bubble (pop) and the amount of money that the public owes. How does giving people “free” money solve that? Sure, if they gave us our rebate checks made payable to our mortgage companies or our credit card companies, that would somewhat help with the public debt as well as prepare us for the recession that most certainly is coming. But they're not going to do that so many people will go out and spend it on stuff that they don't need and will more than likely be tossed in the trash or (hopefully) donated to Good Will (sorry, I'm a hippie) in the next year or so. And then what? Money that the government could have used to pay down our national debt or money that the average citizen could have used to either pay down their personal debt or save for their retirement will be wasted...unless you donate ;-)

Not only am I not going to work forever, but Social Security may not be enough to support me when I retire. In addition, a recession is coming, and I would rather have my credit cards paid off and my money properly invested. If you’re wise you’ll do the same.