An Analysis of the Rebate Proposal In the Announced Stimulus Deal

Debating the Effects of the Economic Stimulus Plan
Posted by: robgregory on Thu, 24 Apr 08 01:45:27 +0000

This is an excellent, though incomplete, research piece that identifies the pros and cons of the economic stimulus plan. The research focuses on the advantages of the plan proposed by Congress over that proposed by president Bush, and it does a fairly good job of this. The article points out that the Bush administration had a plan that was less beneficial to low to moderate-income families. It also correctly points out that putting a larger rebate in the hands of low-income and moderate-income families is more likely to directly stimulate the economy. Where it fails, according to this research, is what is missing from the plan: An extension of unemployment benefits and food stamp support for those families that miss out on the rebates since they do not file their taxes. The main points discussed here are all accurate and important, but even this research fails to show how the economic stimulus plan is incomplete.

A sudden increase in purchasing power is a very good idea.Still, is this plan enough for today's Americans who face losing their homes to foreclosure, stagnant incomes, and an overwhelming inflation of food and oil costs? Americans, moreover, are largely in debt. The question is, how much will a $600 or $1200 check from the government help to change these conditions, not to mention stimulate the economy? This research fails to include the likely impact of the actual amount, across the board; and if not the effect, than how could the plan have benefited should the total amount be increased, and especially for the poor to moderate-income familes.

Still, it is a good start.