Originally Posted by ttms91xj
it just amazes me that the gov't took such a backwards approach to this whole idea. i realize that the dems don't want to benefit the "rich". but as i see it, there is no reason to exclude the people that put the most money into the economy. as i see it, why wouldn't you want them to have the power to buy up stocks that will gain tons of value in both the short and long term, instead of people that can barely afford to go out to eat at applebee's?
The people making the most don't put the most into the economy. You are incorrect here. They are the ones that save and invest. As a country, our savings rate is actually negative. When people get their refund checks they mostly splurge on items they normally wouldn't buy. Even if it's just eating out a few extra days a month. This is what boosts the economy. It is short term but it is proven to work. Most people do not use all of their refund money to pay down debt. This is a misconception. They may use some but not all. They still splurge a little.
The wealth don't buy up stocks intimes like this. If people aren't spending and stock price's drop, investors move into bonds and other ventures. When the economy starts to pick up and stocks start to move back, this is when they jump back into buying stocks.
It is all simple economics but if you don't understand it, then you think the government is out to get you. This has all been done before and has worked pretty well in the past. It is never perfect. The timing is difficult to get right and not everyone agrees, which makes it even more difficult. A recession is nothing compared to a depression. We are only at the beginning of a recession. This isn't that bad. You want to hear about bad; talk to someone that lived through the Great Depression.
Most people bitch about the economy and how they don't have any money but they still pay for cable (digital plus HD & throw in HBO, Showtime, and Cinexax), their cell phones, their internet service, buy lots of toys, etc. Get rid of the extras and you can live quite well on a lower income. Stop keeping up with the Jones'.