Congress and our economy

I was really planning on a positive post for today. But, then I read this article, I had to make a couple of comments on it. Here is the article.

It is the last couple of paragraphs that caught my attention. The first is the sentence that states that the GOP plan does not help those who don’t earn enough to pay income taxes. Okay, so basically the democrats want to give a tax credit to those who aren’t paying income taxes. Interesting idea, but there probably is an easier way to give handouts to those who don’t pay taxes. I think while the idea may even seem to liberals as a way to help those who are less fortunate than themselves, I don’t think it works. By this I mean, do those who they want to give the tax cuts to really ever see money or is it just a shift the money card trick for votes?

The second part that bothers me is one of the final lines where it is stated that it is better to give the money to the lower income than the higher income because they are more likely to spend it than to save it like the higher income. Well, first of all, if the money is saved, it is not done under the mattress so the money is being used in the economy. Then, it dawned on me that saving money is one thing that gives strength to the higher income. By saving money they are able to spend money even when things are tight because they have the money in reserve. Isn’t that something that would be a good thing for the lower income to learn to do? Rather than look at it as a negative, isn’t it a strength that all should learn to do. I can give a great example of why it would be great for lower income earners to learn to save money. When things are really tight for anyone and it looks like it will be hard to make rent or the mortgage payment what do we do? Well, if you have a savings account, you use it to make the payment. What do the lower income earners do? Well, they either go to friends and borrow the money for the rent or they just ignore it. What happens when they ignore it, you ask? Then, they begin to get charge late fees and eventually a warrant is sworn out on them (all these costs added to the amount of rent due.) Eventually, they are either evicted, which means that these costs are eaten by the renting agent, or they pay the entire amount due. So, basically, they have now paid a much larger amount of rent than they need pay. Wouldn’t it have been a lot easier for them to be able to deal with the rent in the first place if they had begun to put a little bit aside each month.

I know I may get comments about how if they don’t have the money to live on in the first place how can they put money aside. Well, it would be difficult, but by making choices of how better to spend the money. Also, if you start by putting the money aside before they look at the money they have to spend, you won’t miss it in the long run. Also, if you start to think like a saver you can become a saver.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s