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To: RayChuang88
The stimulus bills are not working, and will not work, because they don't address the underlying problem: debt. Americans are drowning in mortgage debt, auto loan debt, student loan debt and credit card debt. Until that debt is paid down, paid off, or written off, no amount of stimulus will have any effect. People will not spend until their debt situation is alleviated.

Obama's people realize this, and they are approaching panic because of it.

There is only one stimulus program that wlll work. The IRS must refund the last 5 to 10 years of income taxes to people with the proviso that the money go to pay off debt. Whatever is left over may be spent or invested as people wish. Then, and only then, will stimulus have any effect.

You have to get rid of the debt first.

11 posted on 07/03/2009 8:35:38 AM PDT by Publius (Gresham's Law: Bad victims drive good victims out of the market.)
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To: Publius; All
Debt? What debt? ;)
13 posted on 07/03/2009 8:41:24 AM PDT by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: Publius
Why do you think I am a big fan of FairTax?

Since by definition income taxes favor debt financing over cash payments, no wonder why we get into serious economic recessions every 20 years or so. By switching to FairTax, the incentive for debt financing is DRASTICALLY cut, mostly because Americans can confidently sock away their hard-earned assets without a bite from the IRS and/or state tax agencies and pay for big-ticket items with cash or with much smaller loans.

14 posted on 07/03/2009 8:42:32 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: Publius
You have to get rid of the debt first.

Absolutely. Why don't people understand that debt is real and must eventually be paid? You can kick it down the road only so long until it catches up to you from the rear. And we're taking it in the rear right now.

It will only get worse until people take your advice. The stock market priofit making is disconnected from the underlying real debt right now and that fools some people. Like zer0, probably.

16 posted on 07/03/2009 8:44:36 AM PDT by paulycy (Liberal DOUBLE-STANDARDS are HATE crimes.)
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