Is there another stimulus check on the way?

[Goldy1]

I heard through friends there may be another stimulus check on the way next year. I mean, like the one we got last year, We got I believe 1200 (a married couple) LOL Just wondering.

[kork13]

I hope not.... I think it was a joke (read: bad idea) the first time, and feel it can only go downhill from there. Sure, I appreciated the few hundred dollars they handed out, but the benefit really wasn't very significant for how much it cost the nation. Besides, in the climate we're in, stimulus checks are only going to be squirrelled away into savings accounts.

[Goldy1]

yes, it was not a big deal at all to me either, and it won't do much will it? lol

[Inkstain82]

I'm of the opinion that the first one cushioned the economic blow more than people realize, but a second one probably would be a bad idea.

But there's no plans for one as far as I know. I think people are getting confused because Obama is talking about another "Stimulus package," but that doesn't automatically mean checks to individuals.

[disneysteve]

I think a lot of ideas are on the table but I think Inkstain is correct in that the stimulus Obama is talking about isn't the same as the checks that went out this year, though it could possibly include that, too.

[creditcardfree]

My understanding is that any stimulus is towards public works, such as new bridges and roads and so forth. Sort of a New Deal kind of plan.

[kork13]

Originally Posted by creditcardfree

My understanding is that any stimulus is towards public works, such as new bridges and roads and so forth. Sort of a New Deal kind of plan.

That's largely what i've heard as well. It does have promise... I mean, it worked back then, so why not now?

Honestly, I don't feel that handing out cash and hoping people use it in ways which boost the economy is ever a good policy. Giving them jobs, making them earn some money from the gov't, and all the while doing work that's good for society (roads, bridges, buildings, etc.)? Now that's my idea of actually trying to stimulate the economy (as opposed to poking it with a stick and seeing how it reacts). Just my opinion, FWIW...

[KatieNK]

The stimulus package is to help fund failing agencies that help people, too. But definitely NOT including a check to tax payers.

[Goldy1]

Yes, I mean if that were the case, where does it end? Send multiple stimulus checks a year and it doesn't do much, and we would become dependent on them for the economy.
I get offended by how much "they" want us to spend. By they I mean retailers, possibly governemnt.
The fact I was frugal and did not spend what I did not have with cash on hand has allowed us to not lose any sleep over my dh's recent layoff. Should I sacrifice my nest egg to "stimulate" the economy? no.

I bought a one year old car with cash I saved (by driving a car I bought new for 7 years and not having a payment for over 3 years and dropping collision. First of all you the salesman was in shock and awe I bought he car with cash and it was only about 10 or 11 grand with my 3 grand car trade in.
When I drove off the lot, the sales guy said "see you in a couple years(for another car)" I smiled and said ok! but I said to my husband "I plan to drive this baby at least 5 and maybe another year if it is still safe and not costing me too much in repairs"

[disneysteve]

Goldy, I totally agree with you. Unfortunately, our economy is built on consumerism. If people all become frugal, the house of cards collapses as it is built on more and more spending and borrowing. More stores, more restaurants, more cars, more houses, more travel, more, more, more.

We've been in our house over 14 years. My car is 11 years old, my wife's is 9. We have no debt except our mortgage and that's pretty modest. We certainly do our share of spending, but not nearly to the extent that the powers-that-be would like us to to keep the economy greased. Of course, like you, we are doing just fine as a result, not particularly feeling the effects of the current economic conditions. We've watched our investment portfolio shrink, but in terms of day to day living, we really haven't had to make any particular changes. We were already living well below our means.

[Broken Arrow]

As it has been stated, there are a lot of ideas being kicked around, including some kind of "tax credit" that could go to individual tax payers.

But for the most part, the second stimulus package will consist of infrastructure projects. I actually like this idea.

If the nation has to go into debt to revitalize the economy, then it might as well get something useful out of it, like better roads and highways.

Also, roads and highways are used by commercial trucking, thus could potentially improve commerce in general.

The idea also creates more jobs, which lowers unemployment, and would put a lot more money into the pockets of people who need it the most.

The problem with the first stimulus was that it was a one-time check, it was something for nothing, and it was designed to revitalize the old consumer model.

Even though the second stimulus package is also temporary, the scope of it is large enough that it can have a longer lasting effect for those who need it, it is something that comes only from meaningful work, and I don't see that it necessarily has to revitalize the old consumer model.

Let me just go ahead and also say that the old consumer model needs to die a quiet and unceremonious death. This recession shouldn't be looked upon as a fall from some great heights. Rather, we were standing on a giant bubble, far from the solid earth of reality. And now that the bubble has burst, many are fearing for the worst. Personally, I prefer the comfort of the solid ground and say we should have feared standing on that bubble instead. The economy isn't breaking apart. It was already broken. Now, out of necessity, we are finally fixing it, resulting in all of this mess. But I digress....

Although I was critical of the first stimulus package, as you can see, I am much more hopeful this time around. Confident that it will work? Not entirely, but hopeful nonetheless.

[disneysteve]

Originally Posted by Broken Arrow

Let me just go ahead and also say that the old consumer model needs to die a quiet and unceremonious death. This recession shouldn't be looked upon as a fall from some great heights. Rather, we were standing on a giant bubble, far from the solid earth of reality. And now that the bubble has burst, many are fearing for the worst. Personally, I prefer comfort of the solid ground and say we should have feared standing on that bubble instead. The economy isn't breaking apart. It was already broken. Now, out of necessity, we are finally fixing it, resulting in all of this mess. But I digress....

Well said, BA. ITA!

I've actually found myself imagining that perhaps some of the stores going out of business in my area (the free-standing ones) might never find new occupants and could be knocked down and replaced by grass and trees. Wishful thinking, I'm sure, but wouldn't it be nice?

[Broken Arrow]

Yeah, no doubt, the fallout from this recession is going to result in piles of casulties.... Many companies have already fallen, both big and small.

I mean, on a personal level, I do feel bad for people and families who are among the victims. To be frank, my current job is also at risk from down-sizing, so it's not like I don't understand.

But all this is unavoidable now. Hopefully, America has learned its lesson, and as we move forward towards recovery, we will do so by staying sober and productive from now on....

But yeah, I wouldn't complain about a nicer, greener America either.

[disneysteve]

Originally Posted by Broken Arrow

I mean, on a personal level, I do feel bad for people and families who are among the victims.

Hopefully, America has learned its lesson, and as we move forward towards recovery, we will do so by staying sober and productive from now on....

Agreed. I don't wish unemployment on anyone and I feel bad for those who lose their jobs when places close up. At the same time, though, there are simply way too many stores in our area and more being built every day. They build a Target and then 6 months later, build another Target 5 miles away, then another 6 months after that. Then they go back and expand the first one they built. From my house, I can get to 5 Target stores within a 15 minute drive. I can get to 5 WalMarts within a 15-20 minute drive. I can get to 3 major indoor shopping malls withing 15 minutes and countless open shopping centers and strip malls. All of this at a time when more and more shopping is being done online. Is building more and more and bigger and bigger stores and shopping centers really in anybody's best interest?

[Goldy1]

Yes, I agree with thier being too many stores. I am only 33 and I remember there being only one Target around for miles. There are so many drug stores, and too many grocery stores out there. I can probably go to 100 gourmet markets, supermarkets, and smaller grocery stores within a few miles literally. I was not hurt when Farmer JAck closed for instance. It is a shame there are not as many options for inner city folks who need fresh food.
I see all these niche shops open like "scrap book haven" etc and they board up in a couple years.

[sweeps]

Not just stores, but banks. They're starting to close now, but it was not unusual to see a bank or two (or three!) at every major street corner.

[momof1in150]

I was at a REALTOR's breakfast this morning and there was a tax accountant there talking about taxes and she told us that if you didn't qualify for the 2008 stimulus due to income limits and your 2008 income is within the limits you get the credit on your taxes when you file for 2008. Just a thought for those who might not have received it in 2008 based on 2007 income.

[disneysteve]

Originally Posted by sweeps

Not just stores, but banks. They're starting to close now, but it was not unusual to see a bank or two (or three!) at every major street corner.

Same here. When more and more financial business is conducted electronically and folks are doing more online banking, it seems such a waste to keep building branches. What do they need them for? I've spoken to folks who work in banking and they don't understand it either. One woman told me that her bank may do no more than a couple dozen transactions in a day. Surely, they can't be making enough on those 20 or 30 transactions to support all of the overhead from having the branch there.

[minnie1928]

Originally Posted by disneysteve

Same here. When more and more financial business is conducted electronically and folks are doing more online banking, it seems such a waste to keep building branches. What do they need them for? I've spoken to folks who work in banking and they don't understand it either. One woman told me that her bank may do no more than a couple dozen transactions in a day. Surely, they can't be making enough on those 20 or 30 transactions to support all of the overhead from having the branch there.

Banks are sales offices that do some banking transactions on the side. Tellers are trained to sell products, managers are trained to manage the salesmen (tellers). The hope is that by placing a brick & mortar branch in a new location that they will gain new customers/new accounts. They don't make money on transactions, transactions cost money. They want you to walk into the branch not to make a teller transaction but instead to sell you a new product, that's where the money lies.

I was in banking 20 years, in the accounting department. I've seen the numbers...hell, I produced a good many of the reports!

[disneysteve]

Interesting post, minnie1928. It just doesn't seem like there is enough business to go around to support all of the new branches that keep popping up. When Commerce Bank moved into the area, they sprung up every mile or so. In no time at all, we went from none to a dozen or more in my area. Is there really that much business to be had. At the same time, 6 other banks were also building new branches in the same georgraphic area. They must be making a ton of money to be able to afford to build and staff all of these branches. It can't be cheap.