Okay let's say everyone spends the check money, then what? Will gas be cheaper? Will food be cheaper? Will the people who lost their homes be better off?
Absolutely PoP. It is the GOP reality. Nothing like the real world but they seem to like it.
Many Americans will use those checks to pay off their debts... and understandably so. It is difficult for Americans of ordinary means to live within their incomes, even if they are very disciplined. This was not always the case, but the matter has worsened fairly steadily under the last three Republican presidents. (Bill Clinton was far from perfect, but I'll give him a break, because the lot of middle class Americans improved somewhat during his terms.)
Give an American a few hundred bucks, and s/he will pay off debts. Where's the stimulus in that?
(Aside: I'm not in debt at present, but I could see it happening if we get a serious recession with high, long-term unemployment. I hope all of y'all are stocked up and battened down for whatever comes next.)
The numbers are well known - to stimulate the economy you increase food stamps and unemployment insurance. The people affected will generally be buying local products, like food, and the money circulates.
The way this is structured the main effect will be to transfer debt from people to the Treasury.
Commenting by HaloScan
