2008 Economic Stimulus Package

Well, it is almost official. The nation is only waiting for President Bush to sign it and we will soon receive our money. The 2008 economic stimulus package is an attempt to prevent the United States from sliding into a recession, or from sliding further into a recession - it depends on who you talk to. It will cost the government $167 billion, but what will it do for you?

For singles it will mean between $300 and $600 in your pocket - as long as you earned at least $3000, but not more than $75,000 last year. For married couples earning under $150,000 you will receive $1200. For each dependent you have you will earn another $300. The Senate was able to add onto the bill so that people who receive Social Security and veterans and their widows will receive $300. Originally these groups were to receive nothing.

So what should you do with your windfall? We all have plenty of time to decide how best to use this money, since it won't be arriving in our mailboxes for another 3-6 months. If you are smart you will pay down your debt or save it for an emergency. Of course the whole point of the program is to stimulate the economy, so the government would like you to spend this money.

I am all for stimulating the economy, however I think that each person needs to do what is best for them, and for most people spending this money on wants is not the best thing for them. Many people will use this money to purchase necessities, which is great. I truly hope this money helps people make ends meet, if only for one month. This would help the people and the economy at the same time.

My concern is this. So many of the products America sells are made in China or other foreign countries. If we run out and spend this money without looking at where things are made, most of this money that is meant to stimulate the United States economy will go right back to China.

So before you spend your windfall (and please don't spend it yet, there will be many months between now and when you actually receive this money) decide what is best for you and your family and make some smart moves with this money. Use it to help you first and the economy second. And make sure it is the American economy you are helping.

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Comments 16 comments

WayneBass 8 years ago from Aurora

it depends on who you talk to. It will cost the government $167 billion, but what will it do for you? Actually, it will cost the citizens of he United States $167 billion dollars added to all the other money we have allowed our governmental representatives to pile on us. Why is it that everyone wants to think that when the "Government" does something like this is going to cost the government money? This little deal is NOT going to keep us from a recession but only push us deeper into one and cost the decants out of us in inflation and further decline our money value. This is my opinion and I do not intend it to be a reflection on the author of the article.

Respectfully,

Wayne


JerseyGirl profile image

JerseyGirl 8 years ago from Jersey Shore

The objective is to drive the country out of a recessions; but twelve hundred bucks will not do much for our family.

Sure, I would be more than happy to receive the "rebate"; but the money is long gone. I would not take this money and spend it (no matter what - retail, food, etc...), I would be opted to spend it on past due bills, or other necessary items that will allow my family to live.

So, how will the government "SPARK" our communities? Hmmm... I see more and more small businesses trying to get by and going "out", and then I see the BIG name retailers, who are just struggling and also cannot get by.

The "REBATE" (in my opinion) is a stupid move.

State, Federal and Local Government... we (the people) pay their salary. Why not cut back on spending and forget the rebate??

Hopefully other HUB members will join into this conversation and give their opinions.


The Phantom Blot profile image

The Phantom Blot 8 years ago

Good hub. I see little point in arguing against the stimulus package because it's already done. It's like saying we never should have invaded Iraq...duh. But since it's coming, do as Jennifer says and use it well.

One thing I wonder, Jennifer, is how it works out for married couples in which one holds a regular job and one collects disability? Would that be 6, 12, in between, or forgotten completely. For my part, the money will be going toward bills.


Jennifer profile image

Jennifer 8 years ago Author

Phantom Blot, my guess on this is that it would be $600 for the person holding a regular job and $300 for the person that is disabled. I haven't seen it in writing though, it is just my guess.

Wayne, I have to agree with you, this will not get us out of a recession, the government just hopes it will. The US is so far into debt it is amazing. And this little $167 billion package is borrowed money, which is so frustrating! But it is a done deal, so nothing we can do about it.


Michael 8 years ago

If you know anything about how COGS and merchandinse inventories for companies work, the amount of money that will actually "end up" back in China per dollar spent in USA is only about 3 cents (see artical, CNNMoney - Congrss Giveth)

"For every dollar spent on a Chinese-made product, only 3 cents goes back to China. The rest stays in the U.S.," said NRF's Shearman.

Shearman said the money is spread out along the supply chain and helps to sustain domestic industries and services such as product research and development, marketing, and distribution.

Since manufacturing represents a much smaller part of overall economic activity, more purchases of imported goods eventually helps supports these service-sector jobs, said Dan Ikenson, associate director with Washington-based Cato Institute's Center for Trade Policy Studies, a libertarian think tank."


rmr profile image

rmr 8 years ago from Livonia, MI

While I do look forward to receiving my check (it comes in handy when your car needs 800 dollars in repairs), it's my understanding that it's my money anyway. Isn't this basically an advance on next year's tax return? Being married, with 2 kids, that adds up to 1800 dollars that will be sorely missed next April. Am I misinformed?


MarloByDesign profile image

MarloByDesign 8 years ago from United States

Hi Jennifer, great article, especially about buying American products with the rebate money.

I also wrote an article, pointing readers to the source - IRS Website!!

"2008 Tax Rebate Plan – Right from the source" http://hubpages.com/money/MoneyAdviseByMarlo

I would love your opinion on my article! I am so glad I am a fan of yours (I thought I was the only one who reuses Ziploc bags!)


Pcool profile image

Pcool 8 years ago

What percentage of the total federal budget is $167,000,000,000?

Now compare that to what the total budget is which is in the neighborhood of 3,100,000,000,000. This depends on if the president gets everything he wants.

This is roughly around five percent of the federal budget.

That bears repeating 167 billion dollars is around five percent of the total budget.

There is another aspect of this that is not often talked about.

Only certain families and inviduals under a certain income will be getting a check back. The number are $75,000 for an individual and $150,000 for a married couple.

Why are these number important?

Many families and individuals that make less than this are struggling to make ends meet as it is so as JerseyGirl said earlier she won't be spending the money very much on things that she thinks will stimulate the economy.

One other thing does the U.S. have an economy that is more than three trillion plus dollars? I would say so because there is at least that much invested just in the stock market and there is a lot more than that that is being invested in New York.

So the number 167 billion sure does sound like a big number but in the overall economy it is just a drop in the bucket.

Watching over the economy is just one of the very difficult challenges whomever the next president is going to have to deal with eventually and I would much rather this happen sooner rather than latter.


Pcool profile image

Pcool 8 years ago

There is one another aspect about this.

How many times will this money be taxed?

Is this money exempt from federal taxes in 2009 any beyond?

What about the states that have personal income tax and also sales tax as well?

Another brilliant idea coming out of Washington. NOT!


sweeneya14 8 years ago

I was wanting some clarification. It is my understanding that the rebate check is my money anyway. Isn't this basically an advance on next year's tax return? So this is borrowed money from what I would be in April of 2009??


CreataMind 8 years ago

The government is not you your friend, but they have duped most Americans into believing they are there to help us.  Its latest ploy is the 2008 Economic Scam Package.  Why is a scam? I call it a scam because the government doesn’t have any money.  The only way they get it is by “legally” extorting it from you and me.  And if we don’t hand it over, they will threaten us with imprisonment.  

Now they want to play Santa Claus and give us some “free” money.  I know most people have been indoctrinated by government (public) schools, but I hope most people understand that Santa Claus doe not exist. 

So, where will the government get the money to “give” to us?  There are only three ways—tax us (extort us for more), borrow it, or inflate the currency by printing more money.  Either way, the economy will not be stimulated because we will have pay for this scam.  Wake Up America! 

In the general elections in November, VOTE NONE OF THE ABOVE!


best of the web profile image

best of the web 8 years ago from US

Good one.

Thanks for sharing


funnebone profile image

funnebone 8 years ago from Philadelphia Pa

This is just another example of socialism creeping up on us. Each generation is becoming more and more dependent on the government to feed their kids, blow their noses and wipe their ass. If you traced that 300$ all the way back to when they first took it from you it would be in the 1000's. The pork barrel projects, ridiculous publice servant benifit packages and entitlement programs are destroying us.


solarshingles profile image

solarshingles 8 years ago from london

Very HOT topic and a great 'public/media spin', too.

Somebody needs to pay the cost of the Iraq, Afghanistan and other wars...

Very, very sad. It just shows, how the government is not representing their own people any more, but just filthy Rich and filthy Powerful Elite, who wants to control even more oil interests.

Who do you think the GOVERNMENT is? and what is the purpose of the government? They completely 'forgot' about the US constitution in Washington and about the real interests of own people.

Only the cost of the war in Iraq is more than $3 trillion = $3.000 billion !!!

http://www.timesonline.co.uk/tol/comment/columnist...

http://www2.gsb.columbia.edu/faculty/jstiglitz/

http://de.wikipedia.org/wiki/Joseph_Stiglitz

I hope, the new president is really going to think and act for the good of his/her people.


the informant profile image

the informant 8 years ago

That's just amazing.

First thanks for the hub, like many people this is the first I have caught wind of such an act. And agreed, arguing this is mute. We're in Iraq -should we isn't the question what is going to happen now is. This move by the government smells of smoke screen. Save us from a rising recession? Really, $300-$1200 to counter balance this economy? Hmm sounds like a band aid for a gun-shot wound. I think it's more of the government saving face by 'doing' something. Showing action, not that it is relevant action it is action non-the less...We shall see. Hub was great!


Sergio Rivera 8 years ago

I need to get some websites to find good information on what individuals are going to do when they get the rebate. I am writing a paper for my microeconomics class

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