low-income families most likely to quickly spend any tax relief they get (fast food, Pelosi)

[bornandraised atl]

"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."

This is a quote from House to vote on $787B stimulus package - Feb. 13, 2009

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....

[newtoli]

Ummmmmm... That's kind of the point of the stimulus...

The whole point is to get people out there spending money.

The economy will not be stimulated if everyone socks away the cash. Ideally - everyone should be pumping that cash directly into the economy, or there is no point of a "stimulus".

[HappyTexan]

That's right..it's no insult. Study the demographics for who is eating fast food and buying junk at Walmart. That's exactly who they are targeting.

[bornandraised atl]

Well then - isn't that something? - 'go out and spend money' - sounds a lot like the reason behind where we are now - easy credit, easy money, low savings rate - spend spend spend then you are one paycheck away from falling behind on payments, then repo's and foreclosures.....

I thought the point of the stimulus was to create jobs, lower dependence on foreign oil, spawn new industries, etc etc ......not give it to morons who are going to continue to spend it on non-essential items and plunge themselves back to the brink of where we are now.

[DC at the Ridge]

Originally Posted by bornandraised atl

Well then - isn't that something? - 'go out and spend money' - sounds a lot like the reason behind where we are now - easy credit, easy money, low savings rate - spend spend spend then you are one paycheck away from falling behind on payments, then repo's and foreclosures.....

I thought the point of the stimulus was to create jobs, lower dependence on foreign oil, spawn new industries, etc etc ......not give it to morons who are going to continue to spend it on non-essential items and plunge themselves back to the brink of where we are now.

Oddly enough, that $13 probably won't go towards the new flat-screen TV. It might go to buying whole-grain bread instead of Wonder. It might go towards buying orange juice instead of orange-flavored soda. It might go to buying chicken breasts instead of chicken thighs. The OP is only that lower income people with less discretionary income are most likely to spend this money outright. Your idea of what is essential and their idea of essential are two different things. Some of what you think is essential, they might think of as a luxury.

[Plovedupont]

I just listened to Pelosi say this is the biggest tax cut middle America has ever gotten.

Obama is giving 400.00..........Bush gave 600.00 plus 300 per child

[Dd714]

Or it might go to buying cheap chinese made DVD player sold by Sony, a japanese company.

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.

[bornandraised atl]

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.

[evilnewbie]

Originally Posted by bornandraised atl

"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."

This is a quote from House to vote on $787B stimulus package - Feb. 13, 2009

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....

Democrats prey on the stupid or desperate... nothing new there...

[Kootr]

Originally Posted by evilnewbie

Democrats prey on the stupid or desperate... nothing new there...

Right you are - Democrat politicians do prey on the stupid or desperate. Sadly, Dumbocrat voters are too stupid to realize it. I guess that's because they're stupid!