As we all know now, President Bush has signed into law a stimulus package that is designed to boost the economy to avert a recession.  Some blue collar workers suspect this is nothing more then an attempt by President Bush and Congress to avoid being labeled economic failures.

I spent some time polling my family on what they are going to do with their tax rebates.  Most of my family members are going to pay off some bills.  My parents plan on getting new doors for their house, citing that as a way to reduce their high heating bills.  And of course, there is myself.  I plan on making a mortgage payment.  If the Federal Government expects my family to stimulate the economy, well that just is not going to happen.

I believe this Federal Tax Stimulus (aka Rebate) will help in the short term to get the economy moving.  But the economy is going to fall flat on its face once the spending dries up.  The fundamentals, as observed by the average Joe and Jane, just don’t leave much to be desired.

For too long this country has been robbing Peter to pay Paul.  This rebate, along with other irresponsible spending, is going to leave future generations holding the tab.  There is no way around it.  Right now, Federal spending so far this year is twice the rate of last year.  Check out this story if you have not read it yet.  Federal revenue has dropped 2.1% while spending is up 6.7%.

While some economists think the tax stimulus package will help us avoid a recession, there are still some that see a coming depression.  If you have not had the chance to read the book titled “The Second Great Depression,” I urge you to pick up a copy.  It’s a true eye opener.

Especially in election years, there is always a lot of political rhetoric.  And this year is no different.  Laurie Dobson, US Senate candidate of Maine, has been bold enough to tout her economic plan that is designed to avoid the “coming Bush depression.”  She is also calling for the immediate impeachment of President Bush and Vice President Cheney.  You can read her complete press release here.

Now I would not go so far as to blame the present state of our economy on Bush or Cheney.  The reality is that both parties are responsible for selling out the United States of America.  From flawed trade agreements to teenage spending habits, both Republicans and Democrats have little to be proud of.

Whether or not Bush’s second tax stimulus package will do any good remains to be seen.  Even if people do decide to spend their rebate checks, most of that money will be spent on Chinese and foreign made products.  Who’s economy will really benefit from this tax stimulus package in the long run?

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