I got a letter in the mail from the IRS today concerning my $600 economic stimulus payment. One of the first things it says is, "you will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return."
So ha! :P Stop crying "government conspiracy" and help out the economy by spending the money.
also the fact that the government is giving us money to put into the economy is actually the best way to combat a recession,
to combat a recession the government has to increase government spend on things like public works or military spending. but in todays government where we are seeing huge deficits giving money to the people to spend will greatly help because these purchases will incur taxes for state and local government. helping fun our local economies.
intheory it should work out wonderfully as long as the people spend. the issue the situation faces now is that the marginal propensity to consume is at a record low which means people are spending less and saving more.
saving does not help using the effect money multiplier effect. the only thing it does is allow banks to increase excess reserves and allow for more lending and investment.
but if people arent willing to spend then theres no reason for investment or lending.
BE GREED AMERICANS.
and make sure you buy American. thats a big deal.
all apple computers are built in japan so american dosent see GDP increase.
dodge rams are built in mexico. so we dont see a GDP increase.
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My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
intheory it should work out wonderfully as long as the people spend. the issue the situation faces now is that the marginal propensity to consume is at a record low which means people are spending less and saving more.
HA.... not people in the middle of mustang rebuilds!!!!!!
dodge rams are built in mexico. so we dont see a GDP increase.
Actually, as far as I know, all of the end profit still ends up here (which is better than before, when it ended up in Germany with Daimler), but only the profit. We don't buy the actual trucks from Mexico, we just source out parts and labor. All of the money that gets spent on that outsourcing is lost to us since none of that money is getting pumped back into our economy to get rolled into the money multiplier.
Then again, that assumes Chrysler makes a profit this year=/
All That said, Ford builds cars down there too. I know Focuses (Foci?) are built down there.
And CXR, I'd much rather spend money on sheet metal from the US. OE Ford tooling is going to be a minimum requirement for me when I get around to body work. I doubt I'm going to be able to find, let alone afford, NOS body panels. I may look to Dynacorn as an alternative, though. I've heard their stuff is top notch.
< Message edited by Starfury -- 5/13/2008 4:31:35 PM >
Lets face it. $600 is not enough to buy a car. I think that is out of the question.
You can however, buy things like quarter panels. NPD is particularly good about saying what sheet metal is made in America. I support the idea entirely of people spending their money on AMERICAN made goods...
As far as $600 goes, I think the government hs the right idea. I just don't think $600 is enough. Dont get me wrongl. thats not me saying i want 10k and then ill be happy. I think this is the reight idea, but $600 isnt much, considering the state of things. I filled upo my truck today for $4.09 a gallon... regular 87.... this is getting out of control.
I've said it before and I'll say it again... if people keep buyng hondas and toyotas, this economy will continue to fail. Aside from a home, a car is you next biggest purchase, in most instances. Even a used one. The parts are licensed to that company, and chances are good you'll take it to that make's dealership for service...
my $.02
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So... my "I" key doesn''''t always work on my keyboard... just in case I miss one in my posts.
The idea behind $600 is that the money gets spent and respent continuously, part of the money multiplier. As long as people spend the money, that $600 per person should roll over something like 10 times in the course of a year, meaning that after a year it's like adding 10 times that amount to the GDP. Granted, not everyone's going to spend it all, but the multiplied amount is still significantly more than what was originally distributed to the public. It worked in 2000, and as long as people start spending money (on American products/services) it may just prevent a recession. Granted, we technically aren't in danger of a textbook recession for another couple quarters, but you get the point.
Posts: 6870
Joined: 10/10/2005 From: brunstank ga Status: offline
ive decided to buy another gun my gun i got is quite heavy, this one will lend itself better to daily carry "The possession of arms is the distinction between a freeman and a slave. . . . He who thinks he is his own master, and has anything he may call his own, ought to have arms to defend himself and what he possesses, or else he lives precariously and at discretion" unknown by me?http://www.shootersjax.com/p-2102-m-p-pistol-40-s-w.aspx and best of all its american made so it will stay in the country to further stimulate the economy ;)
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Then said he unto them, But now, he that hath a purse, let him take it, and likewise his scrip: and he that hath no sword, let him sell his garment, and buy one.
dodge rams are built in mexico. so we dont see a GDP increase.
Actually, as far as I know, all of the end profit still ends up here (which is better than before, when it ended up in Germany with Daimler), but only the profit. We don't buy the actual trucks from Mexico, we just source out parts and labor. All of the money that gets spent on that outsourcing is lost to us since none of that money is getting pumped back into our economy to get rolled into the money multiplier.
[/qoute]
correct profit returns to america and money is mulitplied
BUT
GDP or Gross Domestic Product only records production of goods and services within a countries borders.
GNP or gross national product is a record of all income earned by a country(hench profit returning to america via mopar)
the BMW plant in georgia actually contributes to GDP because its produced here. although final checkable deposit profit goes back to germany.
Finally since we base our recession guidelines on GDP growth we must accept only products and services within the country borders. not just american companies.
it dosent have to be american owned! just american made!
services count too, such as restaurants and dry cleaning.
I have my AP Economics test in two days.
so im still not an expert. i like this convo. its keeping me sharp.
correct me if you see my errors please.
< Message edited by Hot70Mach1 -- 5/13/2008 5:18:30 PM >
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My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
hey all i got to say is at least you got $600.. all my family didnt get that and we are poor enough that it would have helped us out alot
i concur.
my dads been laid off for 8 months and just got a job two or three months ago. and its 100% commission. so money isnt the same around here eiether.
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My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
And yeah, you're right. Forgot about that part of it.
I TRIED TO FIX IT! HONEST!
thanks.
also Kramer. i believe that the government purposly choose certain income brackets because they believed that a family with less would be more willing to save the money. and that a family with a little more money would be more inclined to spend the money.
so once again the middle class gets the money and the rich get richer and the poor get poorer.
it has to do with MPS and MPC. the government dosent actually care about the individual receiving 600 dollars. they arent doing it to be nice they are doing it to jumpstart the economy.
blah.
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My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
Actually, I'm REALLY freaking far down the tax bracket. I'm 24 and and a part time (sometimes full time) student. This is the first year I've been able to claim myself on my own taxes; I've been a dependant on my mom's up until now. $20k total household income for a year doesn't put you in a very high tax bracket. $600 to me is a pretty sizeable chunk of change. I'm just young and stupid enough to spend it on my car:) That, and I got a raise at work, so I've got some money burning a hole in my pocket.
But you're right, the goverment isn't doing it for the individual, it's to help the economy as a whole.
As far as $600 goes, I think the government hs the right idea. I just don't think $600 is enough. Dont get me wrongl. thats not me saying i want 10k and then ill be happy. I think this is the reight idea, but $600 isnt much, considering the state of things. I filled upo my truck today for $4.09 a gallon... regular 87.... this is getting out of control.
I've said it before and I'll say it again... if people keep buyng hondas and toyotas, this economy will continue to fail. Aside from a home, a car is you next biggest purchase, in most instances. Even a used one. The parts are licensed to that company, and chances are good you'll take it to that make's dealership for service...
my $.02 [/quote]
my question is why are people buying hondas and toyotas vs others? is it because they are that much more reliable? Id in the market for an american made fuel efficent ultra small reliable car that handles well has a great sporty feel, a smooth manual shifter, and is a blast to drive. my 95 honda civic is getting ready to hit the 300,000 mile marker and its still on the origional clutch etc. oil changes 2 timing belts brakes,exhaust, are all ive had to deal with thankfully. Ill buy what i belive to be quality over buying something american made, id rather buy american made but it means putting up with higher maintanence costs . if they want my money they need to step up to the plate and build them better. my GF's 2003 ford focus has gone through 2 transmission 2 alternators a bad fuel pump and it hardly has over 80,000 miles on it.
starfury... dont enjoy your raise now at 24.. up your retirement saving.
jamison.... does it really matter if one buys honda, toyota nowadays versus chevy, ford. All the products are made in china anyway. amricans are losign jobs and this 600.00 is like welfare.
very true... keep in mind our government is also borrowing the money from china to give us that $600. its funny because china is a comunist nation and yet they will own this country by the use of capitalism. IE making products cheaper, with less labor cost and no unions.
< Message edited by Jamison -- 5/13/2008 6:35:54 PM >
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For all those paranoid about the Economic Stimulus mone... - 
