Regardless of what side of the aisle you side with, I am betting that if you got a check tomorrow for around $10,000, you wouldn’t save it all. Chances are, that might be the “stimulus” (there’s that word again) for putting a down payment on a car or maybe even a home. It might be time to purchase that new HD TV or even take that vacation that you thought you could not afford.
The fact is that having $10,000 that we did not expect would most certainly stimulate the economy. The question is for how long?
Now where did that figure come from? A recent CNN Money Summit was held and the question was asked if the government took all of the bank bailout money AND the stimulus money and simply sent checks to all of us taxpayers, how much would we each get?
Here’s the formula: Take $700 billion (the original bank bailout figure) and mix in about $820 billion in stimulus boost (currently the figure being discussed) and you have about $1.520 billion dollars to play with as it were.
Now take the $1.520 billion and divide it by the 156.3 million taxpayers and you have checks of $9,718.49 going out to each of us.
Now truth be told, $350 of that first $700 billion bank bailout is out the window with nothing much to show for it. The second $350 billion if about ready to fly with a few more rules but in essence, it is spoken for as well. Ah but the stimulus money. That is still on the table (at least until tomorrow as I write this on Monday, February 9th). So even if we applied the above formula to just the stimulus, we would still get checks for around $5,000. Not chump change.
So the question is, do you trust your government more than yourself?