Economic Stimulation
Call me stupid, but I just don’t get it.
How is the Obama economic stimulation package supposed to work? Can anyone explain it to me?
So far this is what I can make of it… the government, who is already in debt up to their eyeballs… spends loads of money to create jobs and to stimulate the economy… is that right?
But what I don’t get, is how does spending more money and getting further into debt, help the overall economic situation? Now I know that I am just a simple poker player and not even close to being an economics expert. But if I applied this economic stimulation principle to a small business or to a family or even to a small city, I still don’t see how spending ton loads of money would help get the small entity out of a slump.
So why doesn’t this apply to the US government? Or do our esteemed leaders think that it doesn’t matter if the US gets into so much debt that it would take generations to pay off. Or am I just one of those old fashioned folk that can’t relate to high levels of debt and that doesn’t like being in debt?
In my humble opinion I think that the economic stimulation package is a political ploy to stimulate popularity and to buy votes. It is part of the consume more now and worry about the consequences later…
If I was running a business that suddenly got into financial trouble – I would analyze all the expenses and immediately reduce any unnecessary spending that is not directly linked to income contribution and profits. I would dedicate a lot of resource to innovation and to creatively improving sales and income.
If it was my family we would look at what we can afford and consume less!
But no… we are expected to spend more… just doesn’t make common sense to me. I can’t see a way out with the current plan.
Please can someone explain to me how it is supposed to work.

February 24th, 2009 at 11:56 pm
they want us to spend and consume…drive the economy
February 25th, 2009 at 9:10 am
Mike – the politicians dont say stimulation…we would all laugh at them (well more than we do already…) the say stimulus dude! Dont sound so bad!
February 25th, 2009 at 9:13 am
Ok Full Monty, sorry…
Should have said stimulus and not stimulation.
Same difference…
February 26th, 2009 at 10:32 am
If you were losing your job you would want the government to bail out your company.
February 27th, 2009 at 11:19 am
The stimulus package allows us to buy more Chinese products so that the Chinese can buy our Government IOU Treasury notes and we can borrow more. Get it? Its called trade…think I’ll stick to my online poker…