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"Democrats counter that the lowest-income families do pay money into the system by way of payroll tax for Social Security and through sales taxes. And they note that it is those low-income families most likely to quickly spend any tax relief they get, thereby making it more stimulative for the economy."
My question is this.....does anyone think this is an insult to the lowest-income Americans?? - here is some money for these people to go buy a flat screen, lotto tickets, new sofa, alcohol -----
Should not the message be save this money and try to improve your lot in life, instead of "here you go morons - free money go spend it - we know you are too stupid to try and save it or use it to improve yourself - by the way vote for us next time"
I wish politicians would just come out and say it - I know what they are doing and anyone with half a brain knows it too - stop trying to pass it off as something else....
Where did anyone (but you) say anything about flat screens, lotto tickets and alcohol? YOUR the one making " an insult to the lowest-income Americans" by making such assumptions and calling a whole class of people morons. My personal experience with low income families is that they will go out and buy clothes or toys for their kids, maybe a blender for mom, or perhaps a dinner at a restaurant. That is, if all their bills are paid first. Others will simply put it in a savings account. There is no one way that this money will go to use.
I was simply questioning the political thought process behind why would the lowest income families be more willing to spend more money than others----
I agree the $13 or whatever it may be won't allow any to buy a flat screen - I think that statistics would show that the low income families are not using that $$ to buy the necessities as a whole - there are folks who are low income "lifers" and folks who are moving their way up the ladder---the one on the way up will buy the breasts vs. thighs or saving it to try and improve their lot in life--- I would strongly argue that the "lifers" are the ones buying flat screens and booze with the extra $$ and creating a lemming-like following for the politicians who give them more cash to buy lotto tickets.
And I would argue back that there are as many middle-classers buying booze with their newfound money as there are lower-income people spending their money that way. Certainly there are people in all walks of life who are going to "waste" that money, just as there are people in all walks who will save it. But it's like the bail-out money. It's just money in. And a little bit of money at that. For people who have very little money, it will give them a chance to buy what they consider a luxury. For people who have ample income, it'll just be there for when they do want to spend it, on luxuries or not.
That is my point --- that is what can be inferred from the paragraph---low-income families most likely to quickly spend any tax relief they get ---- what will they spend it on that will "Stimulate" the economy? --- groceries? --- that won't "Stimulate" the economy - --- my experience with displaced Katrina folks - was strip clubs, booze, and flat screens ---- that is a sampling of low income folks -
Where did anyone (but you) say anything about flat screens, lotto tickets and alcohol? YOUR the one making " an insult to the lowest-income Americans" by making such assumptions and calling a whole class of people morons.
Exactly!!! Some of these posts are simply disgraceful.
That is my point --- that is what can be inferred from the paragraph---low-income families most likely to quickly spend any tax relief they get ---- what will they spend it on that will "Stimulate" the economy? --- groceries? --- that won't "Stimulate" the economy - --- my experience with displaced Katrina folks - was strip clubs, booze, and flat screens ---- that is a sampling of low income folks -
That's right...it's a SAMPLING ....not the RULE....there is no RULE on how low income people spend maoney anymore than rules on how the wealthy spend money.
And, as this economy has PROVEN....the money does NOT trickle down...it doesn't even drip down.
IF the wealthy getting tax breaks creates jobs....
But the middle class was not written about as to be the most likely to spend it....
Again this is a Democratic opinion and I am saying that the democrats are insulting this group of people by saying that they are the most likely to spend it....AND I say that history will show that the majority are not going out to buy ginko-biloba to help them pass a test to move out of their income level - not are the majority buying milk with it
Demographics point out that lower economic classes are more likely to spend money.
Nothing in there about big screen TV's..these people live paycheck to paycheck.
snippet:
"Helping struggling families is not only the right thing to do in hard times; it is also one of the most cost-effective ways to fight the recession. Aid for low-income families generates five times more economic activity than aid for high-income families, according to some estimates, because these families are more likely to spend the money immediately on necessities rather than saving it."
But the middle class was not written about as to be the most likely to spend it....
Again this is a Democratic opinion and I am saying that the democrats are insulting this group of people by saying that they are the most likely to spend it....AND I say that history will show that the majority are not going out to buy ginko-biloba to help them pass a test to move out of their income level - not are the majority buying milk with it
The facts are that this is just more money in the pot. It's not going to be purple money that we can track to see what it specifically goes to. People who save a percentage of their money will save slightly more. People who tithe money to the church will be able to tithe a little more. People whose budgets are stretched beyond breaking, who can't afford to save or tithe, will be able to spend a little more on gas, or food, or clothes, or even lottery tickets (which go mostly to education, so not that much of a "waste"). They may rent a movie they'd have otherwise missed. This year they may buy their kids Easter baskets that they couldn't afford last year. Some of the Katrina victims spent the money in ways you don't understand. But they spent it. And that's what the government wants us to do with this money. So why criticize how it's spent?
The key should really be increasing the money supply in the economy that results in both top down and bottom up stimulus. This is just bottom up. Not bad in itself but it's off balance and may very well not help at all. The rich and companies and middle class don't just sock away money, they spend some, they invest (via savings or direct investment) that results in the creation of wealth and jobs. So they are missing half of the equation. But lets see if it works. Bush's rebates last year did not so I am not holding my breath.
M1 is already up by 15% and M2 by 10% year-over-year. Those are big numbers. Meanwhile, jobs are created in response to a certain type of signal from the market called increased demand. Wealthy people and businesses do not just go create jobs because they can or like to...they create jobs in order to reap the profit offered by additional sales to accommodate increased demand. Demand drives jobs. Demand is created when people spend a dollar. The lower half of the income scale has real needs all the time. They are far more likely to spend an extra dollar quickly than someone toward the high end of the scale. The faster people spend, the higher the velocity of the money and the more new demand is created. Where possible, you want to skew stimulus dollars away from the well-to-do and better. They're too likely to think it over, or worse yet, to put it in a bank, which brings velocity to a crawl...
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