Posted on 08/20/2003 4:47:07 AM PDT by AntiGuv
I ordered my son's college textbooks at the beginning of August over the internet, cost about $400.
Had to charge them because I ordered them online.
I thought when the check arrived, that's handy, it'll cover the cost of the books.
Didn't need to use that money per se to pay the bill, and would have paid it anyway if the check hadn't arrived, but just associated the check with the books.
Maybe that's what other folks meant by "paying off debt."
Exactly! Plus, there are probably millions of Americans who increased their credit card spending in anticipation of getting the refund. And, of course, CBS has not even mentioned the possibility that people are not answering the question honestly. It sounds a lot more fiscally responsible to tell the pollster that you will use the money to pay off debt rather than on a frivolous purchase. I bet a poll asking how many people plan to go to church this Sunday would yield a higher percentage of intended rather than actual church goers.
A president does not have many avenues available to stimulate the economy. Keeping taxes and interest rates as low as possible are about it. The democrats, by blaming the Bush policies for the recession, are blaming the candles for the small amount of light during the blackout.
Whether it's $4, $40, $400, or $4000, it's better off in the hands of the taxpayer than in the government's.
ROFLMAO
30% received checks and of that 30%, 18% spent it.
You can make stats say whatever you want.
BTW since when do we live in a closed economy? Any money not in the government's hands is OK by me regardless of where it ends up.
Well, look at a Chicago Math text book. If you really, really feel that this represents a majority, then it does.
OK, you liquidate a debt, yours. Makes sense so far.
the other 99 percent goes out to other customers - investments in business new loans.
Now you create a new debt and it is more likely a consumer rather than business debt. So what has happened is a debt transfer from one individual to another. In essence, we are back to square one ;-)
No argument here, but this is being treated as the Nations Salvation. It will be nothing more than a ripple. I am all for getting them completely out of my paycheck, rather than these silly Tax games. That would have an impact. Blackbird.
Correct, but your premise is that by $-volume an equal number of debtors stepped up to borrow that money again. But the point of the revolving credit reports is that, no, on balance, revolving debt went down, and other reports show re-fi and mortgage apps falling as well. The valid point has been made that with lower balances, folks may run up their cards again in the future.
However, even if other borrowers stepped up or revolving credit is run up in the future, the velocity of money slows because debt was repaid in the 1st transaction, rather than spent.
Hardly! Someone bought something with that new debt! This improves our economy just as effectively as spending it at the Mall.
No. Repaying debt is the compensation of prior spending of borrowed money. It is not additional spending.
I think you are confusing the velocity of money with the multiplier-effect.
No. The multiplier effect is the result of banks making multiple loans (assuming debtors step up) less the reserve req on each loan. But to make multiple loans, the money has to come back in multiple times. Each time it comes in, it is loaned out less the reserve. Each time a loan is made from the 'same' money supply (less a reserve) the velocity of money increases (assuming the loaned out money is spent on something) and the money supply 'multiplied'.
But the velocity of money can increase without multiplying when instead of saving, someone buys something with cash. But a cash purchase only increases the velocity, it does not increase the banks 'multiplier effect'.
They are related, but not the same.
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