Comments on: A 17 year old’s critique of Washington’s “fiscal stimulus” package http://welkerswikinomics.com/blog/2008/02/12/even-17-year-olds-see-the-flaws-in-washingtons-stimulus-package/ for students and teachers of AP and IB Economics Sat, 22 Nov 2008 08:59:05 +0000 http://wordpress.org/?v=2.6.3 By: Mollie http://welkerswikinomics.com/blog/2008/02/12/even-17-year-olds-see-the-flaws-in-washingtons-stimulus-package/#comment-4063 Mollie Wed, 13 Feb 2008 00:52:17 +0000 http://welkerswikinomics.com/blog/2008/02/12/even-17-year-olds-see-the-flaws-in-washingtons-stimulus-package/#comment-4063 I work at Dairy Queen, a small ice cream chain, and have noticed that, even in these desolate winter months, people are more than willing to spend money on 'wants,' such as, you guessed it, ice cream. As a country, we're not saving money, we're spending, so I find myself questioning the governments move to give us more money - the amount we're already spending isn't an issue. My Econ teacher [yes, I'll give credit where credit is due, Mr. Lauridson!!!] brought to attention [mine, at least], that the small amount that will potentially be awarded to various citizens would not do much for the economy if we all spent it [not that saving it for those mortgages we're falling behind on would do much good for us, either]. So, what's with the money? No, $600 isn't going to help with last month's mortgage payment, and if it's not really going to do much to boost the economy [assuming we even spend it at all, rather than saving it for a rainy day], is Alice right in that it's just a feel-good so that the country doesn't get mad at the government for sitting there and doing nothing in light of the recession [oh wait, assuming it IS a recession]? I work at Dairy Queen, a small ice cream chain, and have noticed that, even in these desolate winter months, people are more than willing to spend money on ‘wants,’ such as, you guessed it, ice cream. As a country, we’re not saving money, we’re spending, so I find myself questioning the governments move to give us more money - the amount we’re already spending isn’t an issue. My Econ teacher [yes, I'll give credit where credit is due, Mr. Lauridson!!!] brought to attention [mine, at least], that the small amount that will potentially be awarded to various citizens would not do much for the economy if we all spent it [not that saving it for those mortgages we're falling behind on would do much good for us, either].

So, what’s with the money? No, $600 isn’t going to help with last month’s mortgage payment, and if it’s not really going to do much to boost the economy [assuming we even spend it at all, rather than saving it for a rainy day], is Alice right in that it’s just a feel-good so that the country doesn’t get mad at the government for sitting there and doing nothing in light of the recession [oh wait, assuming it IS a recession]?

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