Tuesday, July 8, 2008

How I Stimulated the Economy (and failed) by Jodi Beck

I received my letter from the government last Monday (in case you don't know, delivery of the stimulus checks was based on the last two digits of your social security number) telling me my check would be mailed to me by July 5. For some reason I was not eligible for the entire 600. They docked me $47. "That's okay," I thought, and I proceeded to spend the week dreaming about what I was going to do with this treasure that had befallen me. I first thought that I should put it in the bank and pay down some of my debt, but it was the week of our country's independence and I was reminded of my duty to country. This was called a Stimulus check, for Pete's sake, and I would go out and stimulate! I felt an odd sense of pride on Saturday as I spent the money I had not actually received (it didn't end up in my mailbox until today). I bought a duvet cover, sheets, lunch for OB and me, Rollerblades (I've had the same pair for at least 10 years), and a manicure and pedicure. I stopped at this point because I got nervous that the check might get misplaced in the mail and as per the letter I'd received, I wouldn't be able to call the government to ask about it until six weeks had passed. But that gave me some needed time to reflect on the money, and I've decided it's going in the bank. It may seem patriotic to spend the stimulus check, but I want to have some money in the bank when the Chinese come knocking to have our debt repaid. I thank them so much for the joy of new (and cheap) things (yes my Rollerblades were made in China), but it's America that I live in and America's birth I celebrated on Friday. Spending money that should be saved has become the American way, but it's the least patriotic thing we can do. Saving it helps us all become a tiny bit freer of the tangled web of debt that we have created and the Chinese buy up like it was land in Manhattan. They will want it back at some point and you have to believe it will probably happen at the least convenient time. So, that is how I tried to stimulate the economy and failed. How did you do?

5 comments:

Marie said...

it is SO hard as EVERYTHING is made in china. i try really hard to buy from etsy.com as much as possible. all handmade stuff and you can even buy local if you want. my favorite is an artist based in columbus-all of lily's artwork in her room came from her shop :)

Anonymous said...

I know its hard and I am so proud of you. Saving is a very good thing. I got a car, another KIA and it is beautiful and my first girl's car. It is icy blue and everyone tell me they love the color. It is a 2007 and only had 14 thousand 500 miles on it and and warranty until 2010. For the first time in my life I had money saved for the down payment--$3000.00. Jimmy helped get me a great deal. So I spent it the whole thing and now my savings acct is almost -0-. I guess I start saving again this month. Miss you

Jim-the Classical Liberal (Views from the Right) said...

ARRRGGGHHHH!!!!

C'mon, Jodi!

"They will want it back at some point and you have to believe it will probably happen at the least convenient time."

They have purchased bonds...they have a set maturity date...if they want to sell those bonds before then, they have to sell them on the open market...they cannot come and take it!

By the way...of the $9.5 trillion debt, 43.4% is held by government accounts (half by the social security account) and 56.6% is held by the public (including foreign holders which hold about half of this amount). Foreign and international holders of our debt make up just over $2.4 trillion (25.8%).

Another point to consider...the national debt should ALWAYS be looked at as a percentage of GDP (after all, if you are looking at someone's mortgage of, let's say $250,000, what does that number mean by itself? Nothing--you need to know more... If their annual income is $30,000/year this is a HUGE debt...if their income is $150,000...not so big).

The debt as a percentage of GDP has averaged 45.4% from 1940 to now...Our current debt is about 38% of GDP. LOWER THAN ANYTIME IN THE 1990s (Clinton era). If fact, it has been below 40% since 1999! Something that has not been true since around 1986.

Interesting information, isn't it? Check the following:
http://www.fms.treas.gov/bulletin/index.html

http://www.heritage.org/research/features/budgetchartbook/fed-rev-spend-2008-boc-P8-Public-Debt-as-Share-of-GDP-Is.html

http://www.heritage.org/research/features/budgetchartbook/index.html

Jodi said...

Jim, I love you, but you take things far too seriously. This was supposed to be funny and tongue and cheek. No need to get so worked up.

jpb2525 said...

I paid off my visa. I thought about giving it back (as Jimmy would have suggested), but then I thought....what Chinese bank would take the money???