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I got a problem, My education & training will not let me play in the belief pool touting the fear tactic that we are entering an economic recession. The reason I have an issue with this mode of thought is because of the following:
In macroeconomics, a recession is a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year.
Let me be one of the few people to say this “WE ARE NOT IN, NOR CURRENTLY MOVING TOWARDS A RECESSION” we are experiencing an economic slowdown. The Definition states (2 or more successive quarters) 6 months or more, of negative economic growth, we have not experience one full month of negative economic growth in 2008. Therefore I have to ask, why do we need an economic stimulus package? In the past, people had to suck it up, tighten our belts, & operate on a strict household budget. Our parents & grandparents did not look towards the government to give a handout. It was known that the government was not coming to the rescue. They got out and worked extra jobs or started a business. When did it change? Could it be that those generations coveted personal responsibility, versus government intercession in their day to day lives?
Who spends more money, the high income earners or the low wage earners? When I was in college I had an internship working for an income tax preparer during tax season. This was back in 1993 when the (RAL) Refund Anticipation Loan (also known as the Rapid Refund) was just coming to light. The majority of the clients I serviced for this “Loan” product were the poor & low income. Now, many will argue because of the cost of living the poor & low wage need their money. I argue that, the poor & low income need education to know that if they are receiving a tax “Refund” they gave the government too much money during the year. You cannot get a “Refund” unless you “Prefunded” your income tax account. Who handles your money better, you or the government? Isn’t it ironic that you fill out less that 1 full page (w-4) for the government to take taxes out of your check, but you have to fill out multiple pages (1040) to get your refund back from the government? (Disclaimer: File your taxes in proper & legal order. I do not encourage nor advocate not filing and paying taxes)
$600 - $1,200 will be received by most of you within the next 3-5 months as a part of the economic stimulus package. What are you going to do with it? Will you choose to have a Rich or a Poor mentality? The government is expecting the persons with the Poor mentality to rush to the mall and spend the money (to stimulate the economy). Some will say, I am going to put it in my savings account. That sounds noble, however most savings accounts are what I call “across town money,” because it is going to last most people long enough to get “across town” to buy those shoes, video games, or that handbag. What would the person with the Rich mentality do? (Hint: The poor save, the rich invest)
Money typically acts just like water… It flows from the path of least resistance to the path of most resistance. In other words, most people that operate without any type of formal written agreed upon family budget will spend the cash and it will end up in the hands of Mr. Macy, Mrs. Wal-Mart, Mr. Visa, & the Brothers of American Express. A budget is the dam for your money. But if you operate without a monthly budget it will flow to either a person or a corporation that does operate with a budget.
I find it ironic that the federal government that have never willingly given the people any direct monies, have passed out 2 monitary rebates during the last 8 years this one & the last at the end of the internet bubble. Things that make you go Hmmmm!!!
In macroeconomics, a recession is a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year.
Let me be one of the few people to say this “WE ARE NOT IN, NOR CURRENTLY MOVING TOWARDS A RECESSION” we are experiencing an economic slowdown. The Definition states (2 or more successive quarters) 6 months or more, of negative economic growth, we have not experience one full month of negative economic growth in 2008. Therefore I have to ask, why do we need an economic stimulus package? In the past, people had to suck it up, tighten our belts, & operate on a strict household budget. Our parents & grandparents did not look towards the government to give a handout. It was known that the government was not coming to the rescue. They got out and worked extra jobs or started a business. When did it change? Could it be that those generations coveted personal responsibility, versus government intercession in their day to day lives?
Who spends more money, the high income earners or the low wage earners? When I was in college I had an internship working for an income tax preparer during tax season. This was back in 1993 when the (RAL) Refund Anticipation Loan (also known as the Rapid Refund) was just coming to light. The majority of the clients I serviced for this “Loan” product were the poor & low income. Now, many will argue because of the cost of living the poor & low wage need their money. I argue that, the poor & low income need education to know that if they are receiving a tax “Refund” they gave the government too much money during the year. You cannot get a “Refund” unless you “Prefunded” your income tax account. Who handles your money better, you or the government? Isn’t it ironic that you fill out less that 1 full page (w-4) for the government to take taxes out of your check, but you have to fill out multiple pages (1040) to get your refund back from the government? (Disclaimer: File your taxes in proper & legal order. I do not encourage nor advocate not filing and paying taxes)
$600 - $1,200 will be received by most of you within the next 3-5 months as a part of the economic stimulus package. What are you going to do with it? Will you choose to have a Rich or a Poor mentality? The government is expecting the persons with the Poor mentality to rush to the mall and spend the money (to stimulate the economy). Some will say, I am going to put it in my savings account. That sounds noble, however most savings accounts are what I call “across town money,” because it is going to last most people long enough to get “across town” to buy those shoes, video games, or that handbag. What would the person with the Rich mentality do? (Hint: The poor save, the rich invest)
Money typically acts just like water… It flows from the path of least resistance to the path of most resistance. In other words, most people that operate without any type of formal written agreed upon family budget will spend the cash and it will end up in the hands of Mr. Macy, Mrs. Wal-Mart, Mr. Visa, & the Brothers of American Express. A budget is the dam for your money. But if you operate without a monthly budget it will flow to either a person or a corporation that does operate with a budget.
I find it ironic that the federal government that have never willingly given the people any direct monies, have passed out 2 monitary rebates during the last 8 years this one & the last at the end of the internet bubble. Things that make you go Hmmmm!!!
4 comments:
Too many of 'your people' will go out to the mall and spend spend spend, like they won Publisher's Clearing House. People get real!!! It's only $600 (er person) at the most. If you aren't smart enought to do something wise with the money, at least pay a bill. Frivolous money spent, will not yield anything in your future. At least uif you're smart enough to lower your liability,l you're in a bette rposition to have a good future. This government has doled out toe government dope again, strategically just before leaving office. Most of this country is so fed up with the Bush administration that they're shying away from the republican party as a while [to include some die hards]. I believe this stimulus, which if you look at it really isn't a help to anyone above th3e poverty level, is simply a pacifier to aide us in not smelling the stench of the GOP.Pay your bills man!!! Pay your bills!
It's just my opinion, but I'm not wrong!
Too many of 'your people' will go out to the mall and spend spend spend, like they won Publisher's Clearing House. People get real!!! It's only $600 (er person) at the most. If you aren't smart enought to do something wise with the money, at least pay a bill. Frivolous money spent, will not yield anything in your future. At least uif you're smart enough to lower your liability,l you're in a bette rposition to have a good future. This government has doled out toe government dope again, strategically just before leaving office. Most of this country is so fed up with the Bush administration that they're shying away from the republican party as a while [to include some die hards]. I believe this stimulus, which if you look at it really isn't a help to anyone above th3e poverty level, is simply a pacifier to aide us in not smelling the stench of the GOP.Pay your bills man!!! Pay your bills!
It's just my opinion, but I'm not wrong!
I really don't believe that this "refund" is really going to help the economy. First the amount of money that most people are going to receive probably won't be enough for anyone to make significant changes to their financial situation. Second if you are not managing your money correctly, the money will simply "enable" people to keep making the same mistakes.
Peace,
My whole problem with this economic stimulus package is that the government is hoping for, no, COUNTING on the stupidity of the American public to bail it out of this overstated "recession." If folks get their $600 or $1200 checks and put them in savings or pay off some bills with them, game over. In how many ways do the leaders of this country have to tell you that they think you're an idiot before you take the hint?
I'm glad you started this blog. It's been favorited. Keep up the good work.
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