Sorry for the edits, cut out everything I wasn't going to directly respond to.

1) Why has your standard of living gone done? Are you on fixed income?
2) Yes, things cost more. Prices go up and down. We are in an up period, just like we were in a down period during the 90's when oil was undervalued.
3) Why is a tripling of gas prices insane? (though it is insane in that it is reflecting a whole lot of speculation on the market, but I don't think that is
what you are thinking). We are consuming a whole lot more oil now, not surprising that oil prices went up.
4) People are in debt because they thought the good times were always going to last and they consumed above their means. Hate to break it to you, but good times do not always last, which is why you need to save during the good times so when the bad times come you have a cushion.
5) No, you can complain all you want. However, I find complaining pointless. What do you want? Do you want the government to "fix" gas prices? Remember what happened when Nixon did it. I am all for ideas, however lets try to make sure that they don't cause more damage than help.

>>>Some very smart Republicans have called that theory "voodoo". Which, of course, it is. The only thing rebates really do is buy votes from dumb people.

Uhm, that wasn't what "voodo economics" was George.

I mean seriously, people are going to laugh at you if you say things like this. This is PURE Keynesian economics, this is the VERY opposite of what George Bush Sr was talking about. That you think what you do shows that you are completely ignorant of economics and economic theory.

The rebates will provide a small lift to Q2/3 economic activity. It might help prevent this from becoming a recession. More importantly there is a psychological aspect to this, even more importantly there is a policy aspect to this which makes it far more benefical than the mere economic stimulus provides.

If you actually care to know, I would be happy to tell you. But you have to be willing to listen.

Hi Soho, How would the wealthy feel if they were told the good times have to end? How do you think they would take it?
Why do we still have an Enron loophole law passed a few years ago that lets the hedge fund folks speculate on gas. this costs the consumer 50 cents on every gallon of gas because of this law. These hedge fund guys are laughing all the way to the bank. These are the kind of laws in place that only help the rich. Complaining is the only way I have to get lawmakers to feel uncomfortable and hopefully start thinking outside the box and maybe make much needed change in laws for this country. A lot of money is spent on telling us to "suck it up" by the huge and profitable corporations. They did it with tobacco confusing the facts and they are doing it with gas and healthcare too. I just don't buy it. some crooked stuff is going on in Washington and we are suffering while the lobbyist keep bribing congress to keep the rich happy. This is a simple view I know but thats sure how it looks to me. I get frusterated by being told we are spending on frivilous things and need to stop. Some maybe are spending on silly things but many are not and its not a fair look at whats happening all across this country.

Ok, I'm still listening...sorta.

__________________
"All the problems we face in the United States today can be traced to an unenlightened immigration policy on the part of the American Indian."

Which side will you be on?


OBAMA/PEROT

Hedge funds provide a valuable service in the market. You really need to know what hedge funds do in order to be able to respond to this question.

Such as? Be very careful what you wish for. Nixon tried to fix the previous gas price spike and it damn near finished this country off.

Not disagreeing, however these are the people that you want to interfere even MORE with the economy?

Listen, I understand that a lot of people are hurting, my point isn't that something "shouldn't be done", but rather that "something" should be productive and not damaging. My concern is that people, out of pain, will end up doing something worse, not better for ALL of us.

Well, I explained consumer sentiment below.

>>More importantly there is a psychological aspect to this...<< economies are psychological entities as much as they are physical entities. If people feel like things will get better, generally the will get better. If this rebate helps people feel like they have money in their pockets, that will have a good impact on the economy greater than the impact of the rebated checks.

But the policy aspect is even more important. Generally speaking the government has the ability to help a little but harm a lot. If this rebate keeps the government from doing something stupid like try to fix gas prices (because we know the government wants to appear to do SOMETHING), then this rebate is incredibly useful.

I understand the point regarding the psychological effects...I just find it rather amusing that you think those effects are important when you see a positive trend yet discount them when they indicate that people think things suck...seems to me if they don't matter then they don't matter...and that's not just "except when they do."

Speaking of psychological...one of the most recent "political arguments" that comes to mind is the one by McCain when he says he wants to suspend the fed gas tax which is what? Roughly 18 cents a gallon? Hell, gas prices have gone up more than that in the last month or so and then what is going to be the fallout when we (the government) don't have the money to fix the infrastructure?

As to the rebate checks and the psychology of it all...I'd bet 70-80% of the people will have their's spent by weeks end from when they are received...not much longer than a few news cycles...we'll see how much benefit that does to the psyche...my bet is very little.

__________________
"All the problems we face in the United States today can be traced to an unenlightened immigration policy on the part of the American Indian."

Which side will you be on?


OBAMA/PEROT

Soho,

Take a look in the mirror.

__________________
"I hope our wisdom will grow with our power, and teach us, that the less we use our power the greater it will be." Thomas Jefferson

"The conservative movement has been hijacked and turned into a globalist, interventionist, open borders ideology, which is not the conservative movement I grew up with." Pat Buchanan

"The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government"
Thomas Jefferson

I'll spend $60 dollars to fill up my car. Pay off some debt, I.E. student loans @ 9% and stock up on groceries as I'm hedging food prices will continue to rise. Oh also get some amunition for all my guns, because all probably need to use them by Sept 08 or at least October to protect myself.

__________________
"I hope our wisdom will grow with our power, and teach us, that the less we use our power the greater it will be." Thomas Jefferson

"The conservative movement has been hijacked and turned into a globalist, interventionist, open borders ideology, which is not the conservative movement I grew up with." Pat Buchanan

"The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government"
Thomas Jefferson