The tax rebate checks under the Rose bush administration’s economic stimulus program won’t go good if people to put it simply them in the lender.
A week ago, an online content in the Wall Street Journal stated that we have to save additional money – set up interest within the savings won’t match inflation. This same content also restated the most obvious: “ we reside in a lifestyle fueled by credit and spending. ”
This is double speak and misses the entire stage of why America can be going for recession. Wealth is established with credit. The nationwide government knows it, it really is known by the banks, corporations know it and the wealthy know it. With credit, there is access to money to spend which increases corporate earnings, which increases tax revenue, both of which provide jobs and, therefore more income for workers to spend which continues this profit cycle.
When you remove access to credit, spending decreases which means earnings drop, which means jobs disappear, which means people stop spending and the nagging problem gets worse and worse. This downward spiral may be the recession the nationwide government is wanting to thwart with the stimulus checks or with auto equity loans.
If you, and everybody else, takes their $600 typical family refund check and sticks this in the lender then nobody is buying the services and products you, or your business, sells to earn the cash to pay out you your income. When you get rid of your month-to-month income and aren’t pay your bills, then you end up losing your home and your security.
If you, and everyone else, stops spending then there won’t be much left of Corporate America. People in other cultures have learned to do what North Americans seem to be ‘too afraid’ to do; that is, find ways to earn a living besides going to work for someone to get a paycheck. Just look at the growth of micro-lending companies in India as people start businesses on even less than what the average American is getting in his or her “ stimulus check;.
If we don’t wake up and learn how to earn an income that pays for the freedoms and luxuries that we’ve bought on credit, then being broke will be the least of our worries – it will be our freedoms we’re losing as emerging, strong foreign companies and banks who already own more than half the U. S. debt move around in to take over battling American ones.
Saving money is exactly what people do if they fear so much losing – not if they expect to earn. It comes through the scarcity mentality that retains people from stepping away and finding methods to earn the income they have to live, the true way they would like to live.
North Americans can easily start and run a small business of just about any kind using credit. We can even use that money to invest in a variety of wealth building ventures that others have started – both of which create more income which enables more spending.
If you had planned to invest your stimulus check in a growth mutual fund or stock, your investment returns would give you about 7% as suggested in the Wall Street Journal article. On a $600 stimulus check that works out to only $3. 50 a month. However, without spending, those returns would drop because the companies wouldn’t be earning the returns they had in a strong and growing economy.
For $600, you could buy a bolt of cloth and make dish towels and your profit would be a lot more than $3. 50 per month. Make cookies, make anything promote it! Alternately, unless you learn how to sell what you’d make, have a course to build up your economic and entrepreneurial skills after that.
Please spend the cash from your incitement check, even though you’re doing it, be sure you start learning ways to earn a lot more money on a continuing basis.