LC’s Commentary

Listen To The Voice of Reason

Tax Rebate

Tax Rebate

A little something from the Government for the masses

I see Uncle Sam is feeling sorry for the masses and has a bill floating around to give many folks a few dollars to spend. Where will you spend yours?  What will be its best utilization? Will many of you take a trip to Shorter and risk it on the dogs, bingo and slots? How much of it will be used to purchase Georgia lottery tickets? If you run over to Wal-Mart with it, much of it will eventually end up in China.  Will the local hairdressers nail shops and electronic vendors get a significant portion of it?   How many of you will use it to pay a few bills?

The rebate package seems like a lot of money. However, on an individual basis, it is not very much. What will it buy? It will buy about 10 tanks of gasoline. It will pay a little less than 6 months of automobile insurance for those who have a clean driving record.  It will pay your cable bill for a few months.  It will pay for about two months of winter heating bills for many folks. It will not pay for the arrears many people have for unpaid gas bills from past winters.  I am not trying to downplay the significance of the tax rebate. I am just wondering if it will have the intended impact on the economy. 

I suppose the intent of the government is honorable; however I have serious reservations about what it will actually accomplish. It reminds me of the panhandler I encounter at a local mall. I give him a few bucks to tide him over for a day or so. This same fellow will approach me a few days later with the same sad story. He is again broke and in need of a handout.  Unless he obtains the means to provide himself a sustained flow of income sufficient to provide his needs for a significant amount of time, he will always be in need of a handout.  The money I give him is not intended to get him out of his current situation. The tax rebate will serve the same purpose for many folks.  It will give them some relief for a few days and little else.  I seriously doubt if it will make a dent in most folk’s bills.  Once the receivers of this money are no longer in possession of it, will they be better off for very long? How long will it be before the majority will be right back where they were before receiving the rebate? Ask yourself that question. Sure, some may have a new large screen TV or a new cell phone, maybe some new sneakers. A few may even be able to save it.  However, in the final analysis, will most be better off financially, once the money is gone? 


March 11, 2008 - Posted by | Failed economic poicy, Politics, wealth redistribution

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