When I read about the deal to send tax rebates here, here, and here, I was thrilled. I started thinking about putting that money towards that big screen TV I’ve been lusting over for the past 4 or 5 months. On second thought, I decided that its not really going to help people like me, but might actually hurt. I’m no economist, but doesn’t increasing liquidity put upward pressure on prices of consumer goods?
Maybe this is too simplistic, but I would rather have that money spent on people who need the money in terms of food, medical benefits and heating bills without increasing the amount of cash floating around in the broader economy too much. I guess you could even throw in some money for infrastructure repair work. That would take off the inflationary pressure of people like me who put away something every time they get a paycheck, and help those who need the help the most.
All of this would be a moot point if I the layoffs that are happening in start affecting us too?