What will you do with your $600?
As you should know by now the Congress passed the bill that would give nearly $160 billion to Americans. The plan is to give $600 to almost every taxpayer in hopes that they will immediately turn around and spend the money, in turn boosting the economy. Will the plan work or are we already past the point of preventing a recession in our struggling economy?
For the past several months the American economy has been on a downward spiral. There have been a few days of uphill motion only to be followed by another quick downturn. In the long run I’m not too worried about my financial future because history shows us, what goes up must come down and the stock market is no exception. Being twenty nine I’ve got at least 30 years (I hope)Â for it to bounce back so I’m going to keep buying and investing and enjoying the great deals I’m getting on stocks. For those who are older a few months ago would have been a good time to move funds to less risky funds and stocks but….
Anyway back to the $600, will this plan work or is this just a temporary fix to an inevitable problem? Is Congress just trying to sidetrack us into thinking that there is hope for a quick recovery in the economy or are we already in a recession and few of us want to admit the truth? I guess if we were all to immediately turn around and spend the money on a service, good, or pay off some debt then the economy would see a positive effect. Maybe it would be enough to get us out of the hole, but ask around the office and I bet not everyone has spending plans for the cash.
As for me I will probably deposit the money into my high yield (not so high yield right now) savings account or maybe finish paying off a car to increase our monthly budget. I’m still not convinced that putting the money toward debt will do much to fix the economy either, especially in the short term. In that case I guess Congress has about a 50/50 chance that I will stimulate the economy.
What about you? Spending or Saving?
