Stimulus?

When I say this, I’m criticized because I am not an economist or an expert.

“There is a lot of liq­uid­ity and de­sire to spend,” says Jonathan Parker, a Massachusetts In­sti­tute of Technol­ogy eco­nomics pro­fes­sor who stud­ies how peo­ple spend gov­ern­ment checks. He ar­gues the latest round of pay­ments de­signed by the Biden admin­istra­tion should have been more tar­geted to those most in need.

WSJ 3-22-21

Con­sis­tent with the past, a sur­vey by the Fed­eral Reserve Bank of New York showed that 36% of households last year saved the first round of their relief pay­ments, 35% paid down debt and the rest mostly spent it.

WSJ 3-22-21

4 comments

  1. My stimulus will go to purchase a new computer tower to upgrade to 10 since mine is years old and then save for new flooring than carpet in my house with having dogs! So, I’m not holding on to mine, just waiting until I can pay for all of that stuff with cash Maybe that is what others are doing as well with prices going up as I write this and credit card interest is out of sight to charge! Then there was the TX freeze and having to replace plants that aren’t covered under Homeowners. Then everyone wants to know why seniors can’t afford to live on their incomes!! (to replace my 7 Sagos at the size they are is $75. each where is that money supposed to come from!!)

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    1. Evie – We all have to make choices every day. I like steak, but I can only afford hamburger, so I only buy steak once per month or if it is on sale. The money for any extras comes from savings. What I mean is, you do not spend every penny each month, you hold back some in reserve, even if it is only $25 per month, it adds up, $300 in a year. It took me 24 months to pay off my credit card debts, now I use my credit cards to earn cash back, $250 over the last 12 months on everything that I am going to buy anyway. Always paying the statement balance before any interest can be charged. I will never pay any interest on any of my 20 credit card accounts. I now have an 801 credit score, up from a 569 in 2018. I only have balances on 3 cards and switch between them for the best rewards, starting in April my Discover Card is paying back 5% on gas and groceries for 90 days. That will be $80 back in my pocket on food and gasoline that I will need to buy anyway. I will admit that until I got out of credit card debt, there was no ability to save, it is the best thing that one can do to improve their standard of living.

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  2. On other forums I visit, many people who were the first to receive their third stimulus [because it’s based on their income tax return] are saying they don’t really need it… while people who really need it and will spend it [including people on SS, SSI, SSDI, etc] whose incomes are non-existent or so low they don’t have to file an income tax return, may have to wait weeks to get their stimulus!!

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  3. How’s this for irony…

    On other forums I visit, many people who were the first to receive their third stimulus [because it’s based on their income tax return] are saying they don’t really need it… while people who really need it and will spend it [including people on SS, SSI, SSDI, etc] whose incomes are non-existent or so low they don’t have to file an income tax return, may have to wait weeks to get their stimulus!!

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