January 25, 2008

Will the rebate work?

By now everyone has heard of the rebate that the government is going to be giving all of us. Does this move strike anyone else besides me as not just a bad idea, but also as kind of fishy? Itís almost like the government is trying to buy happiness from the public by throwing money at the huddled masses. Actually itís more like they are trying to distract us like a laser pointer does a cat. I just canít help to thing they are trying to soften us up for something horrible coming down the road, besides the election, or if they are trying to draw our attention away from something they donít want us scrutinizing too muchÖ like the upcoming election.

With that being said, really do any of you think this is a good idea? Do you really think this is going to solve our economic problems? Does throwing money at a faltering economy with rising inflation really solve the problem? Now of course I like the idea of getting some of my hard earned money back from an overspending government. Iím not going to lie and say Iím going to turn it down. I just donít think this is going to have the effects they want.

Sure at first it will. People will use that money by impulse spending it away, kind of like our government. Then they will be back in the same boat. The ones that could use it to help get out of debt, probably wonít. Want to bet youíll see a large jump in the HDTVs sales to the lower class by June? Especially since in 2008 High Definition is going to be the government mandated standard. (Iíd go off on this, but it deserves a post of itís own.) Either that or they will use the money to buy a Wii, Xbox or Playstation 3. To be honest I donít know how they will use the money. I do know from first hand experience that most individuals in the lower cast tend to view this money as a windfall that they can blow instead of using to better their situation.

If they really wanted to help our economy they would bring it back to an industrial base instead of a service base. When our economy was the strongest we had a strong manufacturing backbone to our society. Most of the jobs worked in a field that the parent company actually made something. Today we are in a service base economy. Most of the jobs in the U.S. are now with companies that donít make anything, but provide a service to get the items you want or services you need. The company I work for is a fortune 500 company and there is not one factory anywhere that we own. We sell a complete service for billions of dollars a year. Thatís all we do. I can actually count on my fingers the number of friends I have that do work for a manufacturing base company. Two of them actually work for a company that all the manufacturing is done in other countries. Another two work for a company that has some manufacturing here in the States, but are owned overseas.

Because of this we are exporting our wealth to other countries. We are dependant on other countries making the items we need and want. If we can transfer it so that we are making more of our own products and not as dependant on foreign countries to do it, I think you would see a turn around in the economy.

Posted by Contagion in Politics at January 25, 2008 06:57 PM | TrackBack

As you said, the tax rebate will have a temporary, band-aid improvement just like the last time they did it, mainly for the reasons you said - stoopid people will go out and blow it on some crap they don't really need, causing a temporary boost to the economy, rather than doing the smart thing and putting it aside or paying off a debt.

Posted by: Shadoglare at January 25, 2008 07:47 PM

I was just discussing this with one of my dealers the other day. It does help...temporarily. Folks will spend what "extra" they get. If it's $300, I will sell a shitload of $300 mattress sets. The last time this happened, his business that year was the best in 10 years.

And that was for the full year.

I don't think it'll help so much in the cities. Folks will use it for "practical" things. But the rural areas? Where folks have already hunkered down for the long ugly haul? Yeah, it does prime the pump a bit....

BUT...it is still iffy. I just know my dealers are THRILLED.

Posted by: Tammi at January 26, 2008 06:06 AM

I'm sure the dealers are thrilled. Because as you said they'll get a boost... for a short period of time. Then it will be back to business as usual. In the long run will that help the economy any? Probably not. Just like the last time. If it worked then, we wouldn't need to do it now.

Posted by: Contagion at January 26, 2008 06:16 AM

I don't know how your Gov. works, but when our Gov. "give money away", they introduce "Stealth Taxes" to make up the shortfall, so we all end up paying for our "Gift", usually twice over.

Posted by: bx19 at January 26, 2008 11:50 AM

All it's going to do is divide the masses even more.

I am pissed as all hell that I, a tax paying hard worker, will be giving my hard earned money to people who don't even pay taxes.

WTF is up with that?

Can you imagine being a college student and getting a $300 check? Talk about going on a bender.

Posted by: Quality Weenie at January 28, 2008 07:58 AM

I don't think it will help at all. I for one will being using my stimuless to help pay down debt. But I can think of a couple of better ways for the goverment to use all that money besides so called tax remasterbates. Like oh I don't a national helathcre policy. I know the insurece companys won't like that or the hospitals or docters. It would be a shame for them to have to start charging a realistic price. Or how about useing the cash to rebuild the intersturture of the country. Thus creating, dare I use the words, good paying,livable wage jobs. Anyway just some thoughts. Wil

Posted by: wil at January 28, 2008 02:00 PM