Stimulus checks

[Snowflake]

I used it to pay down debt. I could use another check or two, I'm still in debt!

[innerSpaceman]

Oh, I'm gonna need to be stimulated into making a big gooey mess if my debt is going to be paid down by it.

[BarTopDancer]

Originally Posted by Kevy Baby

I am curious about this sentence and wondering if there was an aspect I missed. Does the incentive somehow affect people's 2008 tax returns?

I may have misunderstood the IRS (shocker!) but how I understood this to be was the tax laws were changing next year and most people within the income brackets of this would have received the $300/$600 $600/$1200 amount in their refund next year, so instead they gave it out early as a "stimulus package".

LB was asking if the government just gifted us money.

[Kevy Baby]

Originally Posted by scaeagles

I had read this but then I read that it was not factual. From what i understand this is a true rebate (or rather redistribution of wealth) and there is no impact on 2008. You don't even have to claim the rebate as income.

Even on State returns (that thought just occurred to me).

[alphabassettgrrl]

I heard experts talking about it when the stimulus check thing was in the planning phase. They said it wasn't going to save the economy.

On the bright side, they did send the money to people who spend it; we just didn't spend it like they wanted us to.

[Kevy Baby]

Originally Posted by alphabassettgrrl

I heard experts talking about it when the stimulus check thing was in the planning phase. They said it wasn't going to save the economy.

I'm not an economist and I knew it was a stupid idea. It was just "feel good politics"

[The Original OC Adventure]

Originally Posted by Kevy Baby

I'm not an economist and I knew it was a stupid idea. It was just "feel good politics"

What if instead of a stimulus check they issued gift cards (with expiration dates) that could be spent at retail store that accepted credit cards?

The card could have restrictions on use. It could not be used to pay down existing debt, only for new purchases.

[BarTopDancer]

Originally Posted by The Original OC Adventure

http://www.msnbc.msn.com/id/26074524/

Looks like they failed. Most people used them to pay off debs, or buy gas.

There's talk about another stimulus package. What if they gave out gift cards instead? This would force people to spend the money in retail stores.

Would it work?

Originally Posted by Kevy Baby

I suspect that we would then see fraud as people sold their cards for pennies on the dollar to get the cash. Not sure how widespread it would become, but it would happen.

Originally Posted by The Original OC Adventure

What if instead of a stimulus check they issued gift cards (with expiration dates) that could be spent at retail store that accepted credit cards?

The card could have restrictions on use. It could not be used to pay down existing debt, only for new purchases.

.

[alphabassettgrrl]

Originally Posted by Kevy Baby

I'm not an economist and I knew it was a stupid idea. It was just "feel good politics"

I'm with you here. In an uncertain economy, you're going to send me a check and expect me to spend it on something? Not likely. Not going to increase my spending.

The problem is that our economy is based on a psychotic level of "CONSUME!!! CONSUME!!! BUY BUY BUY!!!" that is unsustainable. Not to mention the expectations that profits will continue to grow constantly without ever having a correction.

[The Original OC Adventure]

Originally Posted by BarTopDancer

Quote:
Originally Posted by Kevy Baby
I suspect that we would then see fraud as people sold their cards for pennies on the dollar to get the cash. Not sure how widespread it would become, but it would happen.

.

Simple solution. Make retail stores ask for ID. Those who fail can have their gift card redemption privileges revoked.