Why You Shouldn’t Spend that ‘Stimulus’ Check

If an American was planning to spend $40K this year on food, clothing, shelter, health and various other expenses and they were hoping to defray some of that cost thanks to Bush’s stimulus check understand that by simply adding another $168 billion of debt (the cost of the stimulus package) on top of America’s current multi-trillion debt load will continue the Bush-Paulson-Benanke trend of debasing the purchasing power of your money and, therefore, raise the price of goods and services by more than the $600 ‘gift’ (without a commensurate rise in wages or increase in interest paid on savings).

I personally knew that this check is really borrowed money, but how many Americans know that? Furthermore it’s really hard to tell the average person not to cash the check. They can not help but look at the check and think of the things they’ll need to use it for. Also for what Mr. Keiser is suggesting in this piece; you would need a lot of people not cashing their checks in order for our purchasing power to be increased. I will say that part of what brings on economic depressions does appear to be the weakening of the purchasing power of working people. They’re the ones that are going to spend more of their income and put it back into the economy, so you hurt the economy by reducing their purchasing power. Also the economy has to be somewhat local or national with the revenue staying put and being cycled through and taxed each time over and over.