Will the Economic Stimulus Plan Stimulate the Economy?

[Merrell Ligons]

In a few months millions of American taxpayers will be receiving checks from the US Government ranging from $600 for individuals or $1,200 for couples. The idea being that once we got the money we would turn around and buy something and help stimulate the economy. Do you think this plan will really work? How do you feel about the fact that people with little or no tax liability will be eligible for the tax refund? Is the plan an elaborate plot by Steve Jobs to make sure everyone can buy an iPhone?

[Jeremy Howard]

I am already paying off several medical bills that Blue Cross has decided they did not want to cover. Combine that with my current credit card debt, and the $1,200 for my wife and me from the "economic stimulus" are basically going to pay off my cards.

As cash-strapped as Americans already are, with gas and food prices still rising, the "economic stimulus" is going to do nothing more than pay for the same commodities we would already be consuming in the first place... just at a higher price. Soccer moms will be using the entire rebate just to fill up their larger-than-my-apartment SUV, so where exactly is the money going? It appears as if the most profitable corporations in America are going to be recipients of the stimulus -- energy companies and the credit card companies. Then again, a large portion will probably go to making a mortgage payment for many, so is this possibly some secret plan to revitalize the lending companies?

I can't afford to buy anything with the stimulus money, because I already bought it and need to pay back my credit card company.

[Merrell Ligons]

I'm not sure if the plan will work to really stimulate the economy. I'm hearing that a lot of people plan to only spend part of the refund. My wife and I plan to take the entire refund and apply it to debt. If I were a betting man I would invest in credit card companies, they will probably have great revenue numbers next quarter.

[Cal Evans]

I can't speak for everyone but my check does not cover the taxes I have to pay. So no, I won't be stimulating the economy with my check, I'll be endorsing it and handing it back to Uncle Sam.

=C=