Bush On The Stimulus Package

This is the largest failure in understanding economics I've seen from the White House. I know they're stupid as all get out and pull some really bad bone headed efforts. But wow, this one takes the cake.

OK, how are we stimulating the economy, and just who's economy are we stimulating? And how is that little bit of cash going to offset the freaking recession?

Fact One: Upwards of 85% of the people are going to run to Wal-Mart and buy Chinese Products, sending most of that cash overseas.

Fact Two: This money is borrowed and there is interest on borrowed money. The payback price is highly damaging.

Fact Three: By borrowing ourselves into another generation of unborn Americans who will have to foot the tax bill on this, that is taxation without representation, and should be illegal to borrow that far into the future.

My Educated Prediction: None of this is going to stop the Depression. That's right, not a recession, this is the start of a National Depression, and it looks like it's going to make 1929 look pale in comparrison by this time next year.

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Your facts are wrong.
1) Even if most of the products purchased are chinese, most of the money will stay in the US. Manufacturing a product is only a tiny % of the total cost of the product, marketing and selling are far greater % and that money will stay and help the US economy.

2) Government borrowing is not necessarily bad. If the rebate increases the economy more than the interest paid, then it is a wise investment. Not saying that this is the case here, but then again you have no idea if it is not. Just pointing out that your assumption is flawed.

3) The Government really never has to repay its debt. Governments are not people, they live forever, meaning that this debt does not have to be repaid (again speaking generally against your assumption, not making claims on the specifics here). Your argument is like saying that handing over a company with debts to your child is really hurting your child. Potentially yes if the debts are more than the company is worth, but not really.

You prediction is ignorant. We are nowhere near a depression. We don't even know if we are in a recession yet (only 30% of economists think so according to the last survey). Your statement is based on your ignorance of what a depression really is.

Take a couple of economic classes and get back to us. I think your statements will have changed by then, though perhaps not.

Why do I have the feeling that a bulldog could be hanging off your ass, chewing deep into your butt meat and growling, and when pointed out, you'd be more than happy to explain the minor discomfort just has to be a biting mosquito and people who think otherwise are ignorant?

We are in a recession. I predicted, mind you if ya need a dictionary on what the word prediction means, about the depression. Besides, it's not my fault you wear rose colored glasses all the time.

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I'm certainly no economist and not qualified to debate the terminology...call it what you want but it don't look too rosey.

April consumer sentiment index at a 26-year low - Yahoo! News

Bush says rebates going out Monday should help economy - Yahoo! News

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"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

Because you are the type of person who thinks YOU really know the score, and everyone else is stupid?

See, this is the point I was making above, 70% of economists don't think we currently are, but you know better.

I know what a prediction is, I was merely pointing out that it was stupid to predict a depression when we are not even in a recession. I further pointed out why several of your assumptions were flawed, which should have caused you to rethink your prediction, but as I pointed out above, THAT is something you will never do.

No it isn't rosy, our GDP will be very very slow (at best .3%) for Q1 and Q2, people who over extended will be hurt, and oil prices will impact growth for the foreseeable future (though in the long run could be highly beneficial)

Personally, I don't find consumer sentiment that meaningful anymore. There is such a disconnect between what people say and what they do now that it has lost really all means to accurately predict anything. Sentiment used to be a decent leading indicator, but people really aren't curtailing their spending despite their complaining about the economy. At best sentiment is now a lagging indicator.

You know all the written facts from one side or the other from the supposed good economists mean little to the average citizen. I am in a depression at my house and so are others. We know it we live it. Ask others they will tell you the same thing. Gas in rural America is like food we need it daily because so many of us live 30 minutes or more to town. Rural Americans drive sometimes 1 hour each way to work and have pickup trucks. Trucks needed for work. Helathcare has skyrocketed. So please, we have heard the economy is doing great for years all the while scratching our heads wondering why our pocketbook is shrinking and we are working harder than ever. This global market, and nafta hasn't worked too well. Telling me different isn't going to make it so...

Do you have a house?
Do you have a job?

If so, then you have no idea what you are talking about.

Sorry to be so harsh, but that is the case. Depressions are nasty people. Depressions are not worrying about not being able to make ends meet, depressions are when the ends don't meet. It's when starvation is the reality not a possibility.

Now I don't want to downplay the hardship that people are experiencing, but at the same time people really need to get some perspective.

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Oh, "gherick", how I hope your are wrong: but now every day seems to say more loudly that your are right. Way to go GWB & gang-of-greed, you may have really done it this time. ....pjwky

Hi Soho,
I do own my home and I do have job. My assets have been accumulated in the last 30 years. Its a different world out there today. I am middle America but my standard of living has gone down the last couple of years.Everything costs more. My concern is this economy is tanking and we see it daily and live it. Depression is for now an exageration by book terms maybe but it looks like we are well on our way if things don't change. 1.50 a gallon of gas to close to 4.00 dollarsa gallon of gas is insane in 8 years. I am in real estate so I hear and know lot about peoples finances. While many make fairly good money few have any money and alot of debt at the end of the month. the cost is rising much faster than the income coming in. Ive heard people say then stop spending and save. This always makes me laugh. Save with what money? I know people who have gotton rid of cable ,cell phones and live in homes at 60 degrees to save money during the winter. Food has risen dramatically and with healthcare being so expensive it just hard to call it anything but a depression for them. Yes it may get harder and become a deeper and more serious depression but thier lives now have become depressed. Thats just fact. Are you saying we should not complain until its so bad our teeth are falling out due to lack of nutrition? Only then it would be o.k.?