How does the stimulus tax refund help the economy?
March 27, 2009 by Tax Forum
Filed under Questions & Answers, Refunds
kim_1849 asked:
How does the stimulus tax refund help the economy, why doesn’t the US just pay off our foreign debts?
How does the stimulus tax refund help the economy, why doesn’t the US just pay off our foreign debts?
masterintellectoftheuniverse on Fri, 27th Mar 2009 9:41 pm
It doesn’t
Jurijs Fadejevs on Mon, 30th Mar 2009 10:58 am
It helps to keep GDP closer to potential level (so economy doesn’t shrink so fast and unemployment doesn’t rises sharply) by keeping demand higher (through higher disposable income).
chris n on Thu, 2nd Apr 2009 1:51 pm
The stimulus tax refund shifts aggregate demand to the right. That is, at any price, people will purchase more goods and service, ceterius paribus. Why doesn’t the US just pay off our foreign debts? Because paying the interest on the debt and investing in schools, technological knowledge and medical research is more fruitful!—>If only that’s what they were spending it on!
bonsai on Fri, 3rd Apr 2009 7:07 am
It increases the 10 Trillion national debt by 165 Billion plus interest. That’s all. Next year will be brutal, pull your pants up.
I just had to sell my house, because we are moving and sold it for 240,000, but bought it in 2004 for 340,000. And I am a lucky one.
Mogollon Dude on Sun, 5th Apr 2009 2:12 pm
It’s only a big PR job .