Just an odd and end
In Don's story on the tax rebates is the fact that vast majority of recipients will use the stimulus money to pay down debt which, in turn, won't really do much to stimulate the economy, though it will provide a welcome reprieve for many folks.
Nothing really more I'd like to add on that aside from the fact that we, as a society, need a massive dose of financial literacy shoved our way. You can't keep putting things on credit and expect for it not to catch up with you.
Nothing really more I'd like to add on that aside from the fact that we, as a society, need a massive dose of financial literacy shoved our way. You can't keep putting things on credit and expect for it not to catch up with you.
posted by Jmac at 8:54 AM
3 Comments:
As a short-term boon, you're right that it won't be all that helpful. But if it helps people get out of debt, then THAT represents genuine economic improvement long-term.
Regardless, living beyond our means is bad news. Government is the worst violater of all, of course. But it's bad when anyone does it.
I think this is more of a societal issue though in the sense that removing some measure of existing personal debit will only be a short-term fix because more folks will move back to spending beyond their means.
The amount of debt saddling most households in our country is staggering, and my fear is that somewhere down the road this will choke us if we don't fix it now.
It's already choking us.
The credit crisis and sub-prime lending fiasco is the most recent example of this problem affecting the economy.
Post a Comment
<< Home