question about this stimulus package

[undercutter2006]

i've heard a lot of republicans say that it would make more sense to give the stimulus money to wealthy individuals (as opposed to the poor folks who are just going to spend it) that are going to put it into the bank because

Saved money doesnt go under the mattress unless the person is a fool. It goes in the bank, which in turn invests it, which stimulates the economy.

what happens when rich people "save" money. Unless they are putting it under the bed they are investing those funds...depending on how they invest it...it's good for the economy by providing liquidity.

how do you respond to that?

[DJ13]

1. The stimulus from spending is more important that saving or investing

70% of our economy is derived directly from consumer spending.

[undercutter2006]

4. wouldn't that mean that welfare program is the best stimulus

if you put money in the hands of welfare recepients, they are going to go ahead and spend it on stuff they need

so by that logic more welfare=good economy :)

[fenriswolf]

2. that the rich people will have a little bit more money in their bank

while we poor people loose out.

[SoCalDem]

3. The "rich" person who "saves" it , may put it with the rest of their "offshore"

money..

They are not going to rush down to Circuit City to buy that TV they have wanted for sooooooo long... or to Macy's to buy that fancy dress they never could have afforded..

It;s all moot anyway, since just about every penny we spend these days, ends up in the pocket of some mega-corporate mogul..or set aside to pay golden parachute bonuses..

It;s not like the "olden days" when dad worked at the local grocery store, and his paycheck was used to pay the mortgage on a home they financed through their local bank, and they bought groceries at the same store dad worked at. They bought shoes from the guy whose family shopped at the grocery store, and put their money into the local bank..

Our money flies off into that "invisible hand" that supposedly "guides out economy".

We use our money to buy plastic crap made by an imprisoned adolescent across the globe. The money we pay for it does not go to local companies whose sales also employ US...