Let’s say the government decides to give everyone $500 back or even $1000 back. What in the world will this due? People will:
1. Go buy a plasma and be in the same situation they were before.
2. Pay down their $%50,000 credit card balance by $1000. Still in the same situation before.
3. People like me that will stick the $1000 into a little hole like a squirrel and still not spend or buy a house.
Given the reliance of the US economy on consumption, I think the goal is unabashedly option #1. The LAST thing this economy really needs is for people to save instead of buy stuff, or just pay down a credit card. Remember the calls to action for people to go out and buy stuff or the terrorists win?
I’m with you, radelow; we’ll put in in the bank in our down payment fund so we can buy when the market bottoms out… or at least eat for an extra month when I get laid off from the coming recession.
