Thursday, February 07, 2008


“WASHINGTON - AP - Congress, facing the prospect of an election-year recession, passed an emergency plan Thursday that rushes rebates of $600 to $1,200 to most taxpayers and $300 checks to disabled veterans, the elderly and other low-income people. President Bush indicated he would sign the measure. House passage by a 380-34 vote came a few hours after Senate leaders ended a drawn-out stalemate over the bill. Still, by congressional standards, lawmakers approved the legislation with exceptional speed to jolt the weak economy. The plan, which adds $168 billion to the deficit over two years, is intended to provide cash for people to spend and tax relief for businesses to make new investments — boosts for an economy battered by a housing downturn and credit crunch.”

In spite of recent assertions to the contrary, I am ready, willing, and able to do my patriotic duty and spend this $1200 immediately upon receipt! I am impressed that the US Congress could make this happen so quickly. My only question is: How is an economy "battered by a housing downturn" helped in any meaningful way by giving people like me $1200? Do you know anyone who will turn their $1200 into a down payment on a home? (As if $24,000 homes exist!) What is the point here?