Stimulus Economus

Kbombbilly writes, “Are those economic stimulus checks any good to stimulate the economy? What should I do with my check to help the economy grow? I heard I’ll be taxed for that check next year – what’s the deal with that?”
Seriously, you’re asking me to tell you how to spend your money? Doughnate!
That would be a lot of donation… But it would be very stimulating. Especially ’round here.

So can that money the government took from you and then redistributed back to you make any difference in the economy? Not really, it’s not really big enough. But without it, all the other checks aren’t big enough either, but when you put it all together then they are big enough, so yes it can.

Virtually all the experts agree. Most of what happens in the economy isn’t based on what happened, or even what’s happening. It’s based on what’s expected to happen.

That’s why a lot of people talking about finance use exciting words, like estimate and projection, when what they probably mean is made-up and clueless.

The government’s handing out check because they’re hoping you’ll spend them. And if business owners see that you’re spending them, they’ll start developing new products and offering new product and hiring your neighbors and paying them salaries and if they don’t think you’re going to spend that check well then the business owners will cut back and they’ll start firing people.

Yeah, I know it’s oversimplified, but seriously, if I could define the macro-economic effect of your five hundred in under five minutes, I’d be a Nobel loriat.

It’s like Doctor What You Ought To Know! Except it’s not a Ph. D. But I’ll take it. And the million dollars that comes with it.

Let’s look at your real options. You can spend that check, you can invest it, or you can cash it out and bury it in your backyard. Just mark it with an X, and dig it up on September 19.

Spending your money, will improve the economy. Investing your money, will improve the economy. Hoarding your money, will not improve the economy.

Spend, spend spend!

But that might not be the best idea in the long run. I mean, rampant consumerism is a part of our trade deficit, which is debatably a problem in this country. Buying for the sake of buying might provide temporary relief and an economic boost, but it can turn around and bite you. Lots of people are talking about a recession, and possibly a depression on the horizon.

Healthy depression, from YouTube, what is it, Healthy Planet?

Healthy Planet from YouTube even asked us, “How do I survive a second Great Depression?” It’s easy. If you’re a stock broker, don’t jump.
Is there really an ominous evil portent of economic downturn on the horizon? … Maybe.

Save, save, save!

Ohhh boy. Now what do we do? With prices going up and goods becoming scarce, shouldn’t I hold onto that money for a rainy day? Before we give the answer, we need to refer you to our Terms of Use video. Go watch it. We’re not responsible. Ever.

A nation’s economy is only as good as the sum of its individuals. And businesses. And leading indicators. Man. If you really want to help, make sure your own financial situation is good economic standing.

First, get out of debt. Even if it was for something good, like school. Second, have some money saved for an emergency. About three to six month’s salary’s a good starting point. Third, put extra money into investments. A nice, happy, balanced portfolio. If you do those three things in that order, you’ll become what the market likes to call a confident consumer.

Remember, everything in the macro-economic world is based off of expectation. If everyone in America did these three things, we’d all feel financially secure, and the markets would feel secure too.

And then who knows. You’d get our government to become solvent. And balance the budget. Hooray for America!

Oh, and you won’t have to pay taxes on that stimulus check. We have a link below.

Doughnate! You know you want to. Come on. They gave you five hundred bucks. Or something. Like that.

Transcribed by: Jessica W.

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