Thursday, January 24, 2008
Miss Priss Does Macroeconomics
The subject of the day is the Economic Stimulus Plan. Basically, we're all going to get $600 dollars from the government in their attempt to stimulate the economy. Couples who file jointly will receive $1200 ($600 a piece) and if you've spawned offspring lately, good news for you! You'll get an additional $300 per kid. President Bush is saying that the package will "boost our economy and encourage job creation." Well, I sure as hell am not going to create a new company with my bonus $1200 check, but in two shakes of a lambs tail I sure will stimulate the economy by purchasing a new bed! How's that for patriotism.
Uh oh, this just in - I read in between the lines. Balls. There is always a catch. You will only be eligible for these checks if you earned jointly $150,000 last year or $75,000 individually. So wait a minute. We are awarding the upper middle class with basically a welfare check? What? Oh man, I've been thinking about this all day and now I realize I'm being screwed. Alan and I did not file jointly last year and even if we would have, we wouldn't have earned $150,000. Puh-leez.
I'm so disappointed, but not surprised.
Why is the government doing this? Because my friends, we are heading towards a recession. Some analysts already define us as in a recession. I'll take a moment and define recession as well as I know how to explain it. It's negative economic growth for two or more quarters a year. Meaning that us Americans are not buying enough product. Therefore, demand goes down. When demand goes down, your supply goes in the shitter. When your supplies go down people get laid off because there is no demand to create the supply. Now I must stress here that it's a perfectly normal, predictable cycle. It happens, it's not the end of the world. However, the way the government handles the next year is crucial as to how bad it could get.
How's that for Macroeconomics in a nutshell?
Subscribe to Post Comments [Atom]
Subscribe to Posts [Atom]