I've been thinking about the "Stimulus Checks". The intent is give everyone, except those in a higher income level, money which they will spend and therefore boost our economy. Yes, it could be a great help to those out of work, and with heavy medical bills and loans to pay off. It could help those with a low income to purchase items that they need, but have not been able to afford. But will it boost our economy? Is this the best way to help the people of the United States?
Here are a few problems that I see. First, though we all love to be given gifts, we have to face reality. The money for these "stimulus checks" will come from the taxes we will have to pay, for many years, to cover all this deficit spending. Another question, why am I paying for average people with sufficient money to be given a "stimulus check"?
Economists have determined that the latest $1,200 stimulus checks did not boost the economy as previous stimulus checks had done. Yes, people with little savings spent their checks within ten days of receiving them, but they spent it on food, rent, bills, and household items. They did not spend their check to purchase luxury items such as a new car, or technological gadgets. Why? Because we're scared.
For years, the American economy has been based on providing services and on affluent spending. Because of our higher wages, employee benefits, and government regulations, American companies often find it difficult to compete with foreign products originating from low paid "sweatshops". It is very difficult to sustain an economy which is not based on production, but on prosperous spending habits. But when things get tough, people save any extra money they have, so they can make it if they lose their job or get sick. We do not rush out and buy a new dining room set, or replace our TV with one that has a bigger screen. No, we hunker down to survive - we put our money in savings.
I can't see how giving people money during a pandemic is going to cause them to suddenly feel safe enough to go out to buy things they really don't need. Few of us are feeling very frivolous at this time and probably will spend our money as before on trying to get ourselves out of "the hole" we are in, or save it in case things "get worse".
What might help our economy? I think President Biden has a good idea of encouraging us to support our own industry by buying things "Made in America". This might help to provide more employment for our workers, and is a good choice that we should all try to make when possible.
Some think the money for the stimulus checks could be better used in more direct aid programs such as more unemployment benefits, small business loans, and incentives for keeping people on their payroll. These programs also may help keep our economy "up and going".
What worries me, though, is when people are simply given money. As a mother, I've seen how esteem is built when things are earned instead of merely given. My church, The Church of Jesus Christ of Latter-day Saints, has a world renowned welfare program where people help others, but those who receive are expected to work all that they are able for their assistance. At another time, they may be the person helping others in need. Our family has experienced this system on both the receiving and on the helping end. You aren't made to feel "inferior". Not only are you allowed to maintain your self dignity, but counseling and assistance are available to help you improve your life. These are sound principles which could be used at a national level.
One way to possibly boost our economy would be to implement a Public Works program such as was done during the Great Depression. It could provide people with work instead of just a "dole". Of course it would need to fit today's society, perhaps with on the job training, apprenticeships, or job counseling, but providing people with work might have more success than just giving people money and hoping they'll buy non-essential items.
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