This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
2/13/2008
Tax Cut 2008
Will the government really stimulate the economy by issuing these rebates? The government is going to give an extra rebate of $600 if you are single or $1200 if you are married, plus an extra $300 per child. In this article it says that the rebate is just going to be a 2008 rebate that are received on the 2007 tax return. This seems to me like the government is looking for a quick fix, and if the people who get this extra rebate spend their money the stimulus package will have a postitve effect.
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2 comments:
I agree with you and think that this is just a quick fix and feel that in the end it can actually be something that can hurt our economy. I just read an article stating that many times when the government tries to keep us from going into a recession and tries to stimulate the economy they actually do the opposite. This was seen in the late 70's. I do not believe that this is best for our current economy. Throwing money at something won't make it better.
Unfortunately, that's kind of the Keynesian prescription: throw money at the economy when there is a problem.
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