The first economic stimulus checks have been cashed or deposited, but I don't see our economy taking a rising bounce. I pondered why this is. Could it be that people are saving their checks? Maybe, people are paying existing bills. I decided to ask several people what they will do with their checks. The first person I asked is a School Teacher. She said she would use the money as a down payment on a new Kia. The second person I asked is a Physical Therapist. She had used the twenty four hundred dollar stimulus check on winter clothes for her four children. These clothes were bought from Target. The final person I asked is a Nurse. She will use her stimulus check for a trip to Paris, France.
Now, at first glance you may think great. These people are not saving nor paying existing bills. So, they will stimulate the economy. Well, not really. Person number one is buying a foreign car. The stimulus will be in South Koreas pocket, not the US. Yes, Kia employees Americans and is on American soil. However, how much of the twenty five thousand dollars will stay on American soil? Maybe five percent? The second person purchased clothes from a French company. Again, how much of that money will stay in America? The final person purchased an international flight and will spend her money directly in a foreign country. So, none of the money will stay or even flow through America.
So, I ask what economy are you stimulating? We all need to remember that the purpose of this money is to boost our own economy, and simultaneously help us get some of the things the rising prices forced us to forgo. As for me, I am building a handicap accessible porch for my daughter. I will buy the lumber at my local hardware store and hire American labor to construct it. What will you do with yours?
