Most economic boosting way to use stimulus $

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Dream of Freedom
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Most economic boosting way to use stimulus $

Post by Dream of Freedom »

As most of you know they are trying to get a bill passed that would give Americans $1200 per adult and $500 per child. Although providing money to the system through holding stock may help society long term I don't think it would give the short term boost that the money is intended for. What should we do with the money to have the effect economic effect without squandering it for yourself.

George the original one
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Re: Most economic boosting way to use stimulus $

Post by George the original one »

Spend it locally in a way that helps wage earners or small business?

Gilberto de Piento
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Re: Most economic boosting way to use stimulus $

Post by Gilberto de Piento »

I agree with George and will likely do that if the money arrives. Or give it to a local charity.

bigato
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Re: Most economic boosting way to use stimulus $

Post by bigato »

I'll be the first to say, I wouldn't change my consumption patterns much because of free money. I'd probably just invest it. But it's not in my country anyways, so it's a moot point.

Peanut
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Re: Most economic boosting way to use stimulus $

Post by Peanut »

If I'm understanding the proposal correctly, we should get $3400 of stimulus money. Initially I suggested we donate it, but since I got roped into delivering groceries to an elderly woman at my church who now texts me regularly, I decided I don't need to be that magnanimous with it. So I'll probably blow it on home maintenance that I've been planning--re-painting, new Toto toilets, etc. through local businesses.

sky
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Re: Most economic boosting way to use stimulus $

Post by sky »

I will use the money in a way that benefits me, not the government or economy.

ertyu
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Re: Most economic boosting way to use stimulus $

Post by ertyu »

For max economic impact, spend the money in a way that puts it directly in the hands of low-income people. Low-income people spend the greatest percentage of each additional dollar they earn, so that the money you give them will all become someone else's money in its entirety. Richer people are likely to save some and spend some, so the proportion that becomes another person's income is smaller. Large corporations may also use the money to pay down debt or in other ways that doesn't put it in the hands of their workers as income. For impact, you want the money to circulate among regular people as many times as possible.

bostonimproper
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Re: Most economic boosting way to use stimulus $

Post by bostonimproper »

I think we're over the income limits for stimulus $, but in general we're donating a lot to local food pantries and mutual support networks (i.e. directly giving to individuals in need of money to pay for food, water bill, rent, etc.). We're also shifting all grocery spend from national chains to local CSA's + regional chains.

jacob
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Re: Most economic boosting way to use stimulus $

Post by jacob »

https://www.nbcnews.com/politics/congre ... u-n1168936

How the stimulus money will be paid out in practice.

Scott 2
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Re: Most economic boosting way to use stimulus $

Post by Scott 2 »

Where does the money come from? Is it a transfer of wealth that slightly lowers the value of any cash people are holding? Am I right in thinking the increased velocity of cash, causing more productivity, is in hopes of heading off deflation? A last ditch effort to avoid 0 or negative interest rates?

I can't find anything that says I pay it back when completing 2020 taxes.

It is going directly into my savings. IMO the income limit is way too high. My spending has nothing to do with this month's cash inflows. I'm way too preoccupied to have a couple thousand dollars change any plans I've already made.

Scott 2
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Re: Most economic boosting way to use stimulus $

Post by Scott 2 »

Looks like some unemployment and student loan related money as well?

https://www.nytimes.com/article/coronav ... swers.html

Jason
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Re: Most economic boosting way to use stimulus $

Post by Jason »

Boeing stock. This way if I make it to old age I have a chance of breaking even on this bullshit.

Campitor
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Re: Most economic boosting way to use stimulus $

Post by Campitor »

I think from a practical perspective, I will use the money to invest in stocks or put it towards a real estate purchase.

The consumerism addiction in the US is so strong (avalanches of toilet paper anyone?) that any hoarding or investing done by the smaller segment of the population will not impact the intended short term stimulus $1200 will make. Eventually it all goes toward corporations anyways since even small businesses depend heavily on the corporate infrastructure to procure, produce, store, sell, or ship goods and services.

ertyu
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Re: Most economic boosting way to use stimulus $

Post by ertyu »

Dream of Freedom wrote:
Tue Mar 24, 2020 6:41 pm
As most of you know they are trying to get a bill passed that would give Americans $1200 per adult and $500 per child. Although providing money to the system through holding stock may help society long term I don't think it would give the short term boost that the money is intended for. What should we do with the money to have the effect economic effect without squandering it for yourself.
Encountered a study today: apparently, tip a waitress or a hotel maid - an additional dollar of income has the greatest velocity that way. You're welcome, and happy tipping

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