It looks like there is going to be a tax credit of up to $1500.00 dollars for people buying a new car in 2009, a credit for new home buyers, and tax cuts so you get more in your paycheck. The idea is to encourage people to spend money to get the economy moving. All well and good, but if my job is not secure or I’m not working because I lost my job why would I want to buy a new car or a house? How can I benefit from more take home money if I don’t have a paycheck?
It does not take a rocket scientist to see that each day we are losing thousands of jobs in this country. I’ve said it before if we want to get the economy back on its’ feet we need to get people back to work. It has been a spiral down effect. Starting slow and small and getting faster and bigger as it moves downward.
Tax cuts and credits are nice, but if the government wants to stimulate the economy they need to spend money to create new jobs and create demand for goods and materials so the factories start bringing back workers.
There are lots of things wrong with the way things have been run and I’m sure there is enough blame to go around for why things are the way they are. We can and must work on fixing the system, but first we need to get people back to work and feeling secure enough that they will spend money. Until then they won’t buy, goods won’t be produced, and more jobs will be lost.