Think about The Core, a Hollywood movie starring Hilary Swank and Aaron Eckhart, or the more recent film Sunshine, directed by Danny Boyle (of 28 Days Later fame). Things are looking grim because our sun/core is slowing -- and the only way to get things back to normal is through intervention in a big way.
For both of these movies, the answer was a ridiculously huge bomb to jar things back into motion. In the case of the current U.S. economy, the "bomb" would be a $140 billion to $150 billion whopper of a bill that would put money back in the hands of taxpayers for the sole purpose of spending, thus providing a big, short-term push across all levels to keep the economy rolling.
Both President Bush and House of Representatives have proposed the U.S. government help with a stimulus package. Barring any hang-ups on specifics that could derail the effort, a check for several hundred dollars from the government could be in the mail to you or your family as early as May.
If you've tuned into the news or scoped out top newspaper headlines recently, a lot of folks are buzzing about this stimulus plan. Last Monday night, President Bush spoke of the bill during his final State of the Union Address. So as young adults, how does this affect us?
Well, here are the basics being talked about right now. The government wants you to spend money to help turn the economy, so much so that it's essentially willing to pay you to do so. The proposal thus far will give individual income tax payers a check of up to $600. With this stimulus bill, the goal is to encourage people to go out and spend, thus sending a jolt through the economy, hopefully helping it regain some momentum lost due to ongoing effects from the sub-prime mortgage and credit situations. From the looks of it, if you're paying any income tax at all for 2007, you'll likely qualify for some kind of kickback from this stimulus plan.
On January 18, President Bush also urged that the growth package include tax incentives for small business investment as well as tax relief for individuals.
As a small business owner myself (in addition to being an editor at brass), I'm curious to see what kind of investment incentives might be offered in the package. Sure, I'd love to invest money in growing my business, and if the government is offering me incentives to do so -- then joy!
Alvin Hall, a financial expert speaking on National Public Radio, cautioned tax payers to use their stimulus money wisely -- for young adults, he said paying down consumer debt (like credit cards) would help a lot more than simply going out and buying a new TV. You can listen to his commentary here.
For me, the answer to staying stable may not be getting more money; rather it is making sure I live within my means. Actually, opponents of the stimulus bill are arguing just that. They say such a bill is only a temporary solution -- the long-term cure is getting everyone to dial back on their consumption and start spending and investing wisely.
Now there's a chicken vs. egg debate. Call it differing schools of thought (both of which have merit, for sure). The bottom line right now is if this stimulus plan is enacted, that probably means some extra money will come to you. Take the advantage of the extra bucks and be smart about spending it.
- Peter
Post new comment