So, if you’ve checked the news lately you’ve heard about this $168 Billion dollar ‘Economic Stimulus’ package that is supposed to help revive the economy. I’m not an economics expert by any means, so I’m not really interested in discussing those details just yet. Basically, the plan will in effect mean that I’m going to get a nice fat check from the government in May, a gift with the express purpose of ‘stimulating’ the economy. And here is my dilemma.
My family operates on a budget. We’ve looked at our finances, decided what was an appropriate amount to try and live on, and that is what we live by. What we do with the excess usually falls into some pretty boring categories, like paying off our debt. From what I’ve read, if everyone took the stimulus checks and paid down their mortgages, paid off outstanding debts, etc. then the goal of the whole deal would not be reached, it would basically flop. I’m not sure if that’s the case or not, but I do think the point is to use the money to stimulate the economy, i.e. spend it.
So, I run into two dilemmas as I think about this money, and I’m curious of your input.
- Should we take this money and actually spend it on consumer goods? or just pay off debts?
- If we spend it on consumer goods, how should it be factored into our budget? Shopping spree? Or giving spree?
good thoughts Ariah.
always, always, always pay off the debt. i just channeled my mom, i think. and, as my dad always says, “the borrower is servant to the lender”.
on a more “damn the man” note, it would be nice if everyone spent there government money to pay off debt, sending a message about where our priorities lie. however, that is ridiculously idealistic.
I have been leaning towards saving the money I get. (I’m trying to save up to buy a house) On the other hand I like the giving spree idea. Maybe I’ll give some away and save some.
Adria and Brian,
Definitely see your points, it’s what I lean to first off (saving and debt relief), but given the circumstances, I’m leaning toward spending it on consumer goods.
The whole point of the money being given is to help stimulate the economy. If we all don’t do that, then the possibility of recession looms before us. At least, I think that’s the reasoning. So, I think I trust those government folks enough to believe that’s really what might happen and the point of them giving me the money is to spend it.
Does that make sense?
Think of it like this. If your parents gave you a gift card for your birthday to a particular restaurant, would it be fair for you to take it, sell it, and pay off your debt? Obviously, it’s your birthday so you should do what you want, but the intention was to enjoy a meal at the restaurant (I don’t usually argue this side). It would seem to me this government stimulus check is similar only even more so, the intention is even more important then the alternative.
Thoughts?
you bring up an interesting point. i was thinking of saving it or giving it to a good cause. maybe giving it to a worthy cause/person could also add to the economy? it seems like there should be another solution other than buying more stuff. ??? thanks for making me think, as always. š
I see your point. Although I don’t think the stimulus package was a good idea to begin with. The Federal budget hasn’t been balanced for decades and we are actually going into more debt to get the money into our hands. I see it as capitalisms gone bad. So if I have no choice and I am going to get the money I am going to use it wisely.
Also it’s actually debatable if we are headed into a recession or not.
A gift card from a family is one thing, a gift from the government is another…one gives out of love, one gives to save itself. It doesn’t concern me too much that what I do with the money might not be what the government wants me to do with it. Why? Because I try to live my entire LIFE in a way that speaks out against the problems of our overconsumptive society. You and I both desire to be free of consumerism, reuse the old, and live our lives simply. Our economy doesn’t like people like us, who make plenty of money but don’t spend it on more stuff. Our economy thrives on satan to keep doing his work with greed, discontentment, and careless waste, does it not? Our economy would collapse if there were too many people like us. So it just seems weird to use this one time “gift” any differently than I spend the rest of my money.
I’m no economist either, but I do agree with Brian when he said it’s “capitalism gone bad.” Our nation is out of control with its spending. It’s ridiculous that the way we value everything from people to holidays is how much money they contribute. I’m not an anarchist, but my allegiance isn’t first to my country and to preventing it from going into recession. Recession, depression or plenty…more of us need to speak out loudly against affluence at the expense of others, and for a better way of life than buying more stuff.
Daniel, Brian and others,
It’s weird to be on the other side of the argument for a moment. Let me reflect on some of my thoughts.
Regardless of what I think about our government and/or capitalism, we can’t deny that those are the structures and systems currently in place. When are economy is doing well some of the positive byproducts (I’m not saying everything is positive) are that people have jobs, they can pay to put food on the table for their families, keep the heat on, etc.
The possibility of a recession has some very negative consequences, not just for the terrible government and really rich, but for the little guys too, the very people I’m compelled to care about and love on. So, though I’m not a fan, I do want to think hard about what capitalism, and it’s possible recession might mean for them.
two other thoughts/questions.
1. Why don’t you think there might be a recession?
2. If your anti the reasoning behind the stimulus, government check, etc, would you consider refusing to accept it?
Hmmm, good points Ariah, that I hadn’t thought about. I knew that you weren’t thinking selfishly about the recession and economy, because I know you. š And I think you’re right that a recession could lead to the little guys, the poor, suffering. It’s a difficult issue…on the balance is convictions about our out of control consumerism for which the poor pay, and our love for the very least people who would also pay during a recession.
Someone else answer. š
i’m enjoying this discussion. could a healthy solution be to buy things for the least of these? if i buy school supplies for a child, dinner for a homeless person, or shoes for a mom who can’t afford shoes, it seems like i would be killing two birds with one stone. right? i would be contributing to the economy without overindulging myself in more “Stuff” that i really don’t need. whaddaya think?
First, let me say I think that the whole economic stimulus package is misplaced. Instead of mostly going to the people (mostly the working poor) who are living paycheck to paycheck and would use the “refund” instantly on necessities like groceries, getting that something special they usually can’t get, the money is going mostly to the middle class. People like us who have budgets and live on what we have and more than likely will pay off debt.
Saving is different depending on how you are saving it. Saving is like investing your capital, you lend it out to others so that they can use it and thus it creates more capital, jobs, etc. So saving while not instantly boosting the economy at least puts the money out there as an investment in creating more capital.
I have been thinking about this myself, but with my seminary debt, wife’s student loans, and credit card debt (from trying to survive on next to nothing in seminary) I personally cannot justify just spending it on consumer goods.
The one thing I have been thinking about is what if I just took that money and gave it to the guy/gal out on the corner asking for money to get food, etc. It is almost guaranteed he/she will spend it on stuff needed and it will also boost the economy. Plus the opportunity to share with the individual the reason why as a Christian (person of faith) I am moved to give the money to him without any strings might touch a life with the grace of God that otherwise might not be touched.
Sorry for the stream-of-consciousness writing, but I am just working this all out.
Good thoughts Ariah, To me is seams that the poor get hurt either way. If we all go out and buy more stuff then the poor in other countries pay the cost, usually environmentally, however, if I don’t buy more stuff companies might layoff the poor in this country to keep there profits up. I really don’t see how the poor helped either way. I hope I don’t sound too pessimistic.
I’m not sure how you could refuse the money, but perhaps your idea of a giving spree could be used as a way of prophetically making a statement about the issue. Perhaps if people were to give the money to the poor in there neighborhoods abroad or something like that.
Awesome. You guys have all mentioned creative ideas on how someone might use their “gift” to help the poor in our country twice…both by the simple gift of money, and by the likely contribution to economy, therefore decreasing the effects of recession. (Brian’s also right in that the poor in other countries will continue to pay as long as we consume at our current rate. I think these ideas might possibly be the lesser of two evils, because their impact could be more significant for all the little guys.)
I like it. And there’s probably not one best solution, I’d like to see people carrying this out in many different ways, each expressing their love for the poor with creativity.
I like where this is going. I hinted at it in the post (“giving spree?”) but wanted to see if anyone else came to the same conclusion as a possible idea.
So, what would folks think if we tried to launch a mass giving spree when those checks come out? Thoughts?
Stay tuned for another post on the topic later.
I say let’s go for it!
I’m in!!!! Wait…Amanda dear, are you reading this? Are we in? š
I honestly believe that the stimulus package is a bad idea. I’ve heard many economists say that many of the problems of our economy are being caused because we are spending too much money. People are over extended on credit which is leading to inflation and on and on and on.
I’m sure that plenty of people will blow their cash on frivolous or nonfrivolus items, but as a Christian, I am a steward of every dollar that passes through my hands. I personally am not under obligation of the Government to do as they wish with my money. For me, its all going towards debt.
Hey,
thanks for the comment! I found your blog when was Googling for that quote by John Wesley about how if he died with anymore than 10 pounds he should be called a liar and a thief. I’ve been reading for a weeks and so far I love the content!
So if you see Jason J on here again, just know that I’m that random guy from Maryland! š
I’m planning on using that check to buy the things that I couldn’t buy with money in our budget like some new clothes for my professional job. It wasn’t planned on in the budget, and it’s not going in the budget.
I’ll divide it in percentages: 50% contribution to my debt, 25% to savings, 20% to anything I want, and 5% donation. I can’t wait to get it. š