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Joined: Fri January 04, 2013 1:46 am Posts: 2817 Location: Connecticut
The stimulus just paid for the appliances for a new kitchen. We have 3 kids, getting $7k. Our 2019 return was just under the cutoff. So we are people who “didn’t need it” but also people who will use the money as they wanted us to - by spending it.
I do wonder if America is creating a bubble here. The gov’t isn’t always gonna have a crisis to point at to justify the spending. Can the private sector sustain this in a year or two?
Either way, it’s not the worst time to be selling your house or doing a remodel.
The stimulus just paid for the appliances for a new kitchen. We have 3 kids, getting $7k. Our 2019 return was just under the cutoff. So we are people who “didn’t need it” but also people who will use the money as they wanted us to - by spending it.
I do wonder if America is creating a bubble here. The gov’t isn’t always gonna have a crisis to point at to justify the spending. Can the private sector sustain this in a year or two?
Either way, it’s not the worst time to be selling your house or doing a remodel.
Honest question: Would you have bought the appliances if there was no stimmy check coming?
_________________ "I want to see the whole picture--as nearly as I can. I don't want to put on the blinders of 'good and bad,' and limit my vision."-- In Dubious Battle
Joined: Fri January 04, 2013 1:46 am Posts: 2817 Location: Connecticut
4/5 wrote:
Rob wrote:
The stimulus just paid for the appliances for a new kitchen. We have 3 kids, getting $7k. Our 2019 return was just under the cutoff. So we are people who “didn’t need it” but also people who will use the money as they wanted us to - by spending it.
I do wonder if America is creating a bubble here. The gov’t isn’t always gonna have a crisis to point at to justify the spending. Can the private sector sustain this in a year or two?
Either way, it’s not the worst time to be selling your house or doing a remodel.
Honest question: Would you have bought the appliances if there was no stimmy check coming?
I did opt for an induction cooktop that I may have thought twice about otherwise, but yes, we still would have bought the appliances. It was good timing for us since we're beginning a project anyway, but I'm just saying most of this money will probably be spent on stuff. Isn't that what they want us to do?
The stimulus just paid for the appliances for a new kitchen. We have 3 kids, getting $7k. Our 2019 return was just under the cutoff. So we are people who “didn’t need it” but also people who will use the money as they wanted us to - by spending it.
I do wonder if America is creating a bubble here. The gov’t isn’t always gonna have a crisis to point at to justify the spending. Can the private sector sustain this in a year or two?
Either way, it’s not the worst time to be selling your house or doing a remodel.
Honest question: Would you have bought the appliances if there was no stimmy check coming?
I did opt for an induction cooktop that I may have thought twice about otherwise, but yes, we still would have bought the appliances. It was good timing for us since we're beginning a project anyway, but I'm just saying most of this money will probably be spent on stuff. Isn't that what they want us to do?
When economists attempt to measure the impact of this spending that would have taken place without the stimulus won't count as part of its impact. The idea (if this were supposed to be stimulative, which I don't believe) is that people would spend money that they wouldn't have spent otherwise, which leads to a multiplier effect of other spending that takes place only because of the initial stimulus spending. Ftr I'm not being critical. My wife and I are in the same boat, we're going to put in new flooring, which we would have done whether we got any money or not. So our current spending isn't increasing at all, it just makes it easier for us to spend that money.
_________________ "I want to see the whole picture--as nearly as I can. I don't want to put on the blinders of 'good and bad,' and limit my vision."-- In Dubious Battle
The stimulus just paid for the appliances for a new kitchen. We have 3 kids, getting $7k. Our 2019 return was just under the cutoff. So we are people who “didn’t need it” but also people who will use the money as they wanted us to - by spending it.
I do wonder if America is creating a bubble here. The gov’t isn’t always gonna have a crisis to point at to justify the spending. Can the private sector sustain this in a year or two?
Either way, it’s not the worst time to be selling your house or doing a remodel.
Honest question: Would you have bought the appliances if there was no stimmy check coming?
I did opt for an induction cooktop that I may have thought twice about otherwise, but yes, we still would have bought the appliances. It was good timing for us since we're beginning a project anyway, but I'm just saying most of this money will probably be spent on stuff. Isn't that what they want us to do?
When economists attempt to measure the impact of this spending that would have taken place without the stimulus won't count as part of its impact. The idea (if this were supposed to be stimulative, which I don't believe) is that people would spend money that they wouldn't have spent otherwise, which leads to a multiplier effect of other spending that takes place only because of the initial stimulus spending. Ftr I'm not being critical. My wife and I are in the same boat, we're going to put in new flooring, which we would have done whether we got any money or not. So our current spending isn't increasing at all, it just makes it easier for us to spend that money.
I’d say the point is it’s more psychological than an expectation that everyone will go out and spend their check. Mom and Dad are more likely to feel like they can get a pizza on Friday night if Uncle Sam drops several thousand in their laps. On a mass scale, that’s very stimulative. Americans love to spend money already; make em feel like they still can.
I’d say the point is it’s more psychological than an expectation that everyone will go out and spend their check. Mom and Dad are more likely to feel like they can get a pizza on Friday night if Uncle Sam drops several thousand in their laps. On a mass scale, that’s very stimulative. Americans love to spend money already; make em feel like they still can.
I hear what you're saying, and again this comes down to whether this spending is supposed to be truly stimulative, to which I say it isn't as I've previously argued. If it is, though, the bottom line is you need people to spend more money than they would have in the absence of the stimulus. Whether it's through a "we're rich, let's get pizza tonight!" or a vacation (okay maybe not a vacation this time) or renovation or whatever, it needs to increase your spending for there to be any multiplier effect stimulus. So, sure it might start with the psychological, but it has to get spent if it's going to stimulate economy wide spending, which is the goal of a stimulus policy.
_________________ "I want to see the whole picture--as nearly as I can. I don't want to put on the blinders of 'good and bad,' and limit my vision."-- In Dubious Battle
It seems to me like it’s pretty commonly accepted that the end of the pandemic alone will lead to an upswing in consumer spending. And the stated purpose of the stimulus check has been to provide a cash infusion to families that have suffered serious economic setbacks due to the pandemic...we’re probably not talking about people who are currently considering redoing their kitchen, buying new appliances, etc.
The rest of us are just getting checks because hyper-targeted, swiftly-delivered relief is too complicated a task and too ugly a political sell, imo
It seems to me like it’s pretty commonly accepted that the end of the pandemic alone will lead to an upswing in consumer spending. And the stated purpose of the stimulus check has been to provide a cash infusion to families that have suffered serious economic setbacks due to the pandemic...we’re probably not talking about people who are currently considering redoing their kitchen, buying new appliances, etc.
The rest of us are just getting checks because hyper-targeted, swiftly-delivered relief is too complicated a task and too ugly a political sell, imo
I agree, that's why I would call this a relief bill and not a stimulus. And I agree this is just about politics. Needs-based aid doesn't sell as well as this. So it goes.
_________________ "I want to see the whole picture--as nearly as I can. I don't want to put on the blinders of 'good and bad,' and limit my vision."-- In Dubious Battle
It seems to me like it’s pretty commonly accepted that the end of the pandemic alone will lead to an upswing in consumer spending. And the stated purpose of the stimulus check has been to provide a cash infusion to families that have suffered serious economic setbacks due to the pandemic...we’re probably not talking about people who are currently considering redoing their kitchen, buying new appliances, etc.
The rest of us are just getting checks because hyper-targeted, swiftly-delivered relief is too complicated a task and too ugly a political sell, imo
I will definitely be able to spend more money in the coming weeks because of this.
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I will definitely be able to spend more money in the coming weeks because of this.