Do Tax Rebate Stimulate?

Didn't we have back in either 2003 or 2004 a Tax Rebate which was expected to stimulate the economy? With all of this up and down in the economy, I am reminded of a time recently when we had a tax rebate, which was expected to stimulate the economy. I am also reminded that after the tax rebate, it did little to stimulate the economy. Part of the problem was that people were using the money to pay utility bills. Another factor was that people were having to pay medical and doctor bills, because a great deal of corporations either stopped covering part of medical insurance costs for their employees, or the employees had to pay more to get less coverage. Isn't that still the same situation we have here? Did the economy ever get better?

The Stock Market today is doing the same thing it did back then when they learned of the Government helping to stimulate the economy, they did what I like to call, trading on a promise. In other words, -- they are counting the eggs before they hatch. -- It is also speculated that some or most of the ones doing the bargain buys are actually foreign money.

But doesn't that mean that the economy is getting better? To answer that question we have to cover the other things that are happening now. Some of which did not happen before.

Housing: It was reported today that the sales of housing has dropped, plunging to the lowest sales of existing single-family homes reported in 25 years. The average price of homes dropped for the entire year. That is the First time that has happened in 4 decades. And since 1982, we have seen the biggest plunge of sales for the single-family homes by 13 percent. It is the first time that this country has seen such an annual decline in housing sales since the Great Depression of the 1930's.

Another thing that is happening now that was not happening before is the $100.00 per barrel of oil. Since 2002, every year, some times up to 2 or 3 times a year we have seen a increase in the oil pumps. And since 2002, every year we have seen an increase in our electricity. And since 2002, every year we have seen an increase in our heating, gas or oil.

So what does this all mean. It is simple. This down turn really began since 2002. Well what was it that happened at that time? It was after 9/11/2001 and we had a war. A war which since has expanded to yet another country. Yes that could have cause some of our troubles. But we also had something else that everyone forgets. And it is something which occurs every single time the Republicans are in the White House. We have 'FINANCIAL GOVERNMENT INCENTIVES' for businesses to send American jobs overseas, to build plants overseas, then they lay off American workers in the states until they either have little or production in States. Add to that the plant closures. But this time we had something new which began in 2002. With this Republican Administration we also have the 'FINANCIAL GOVERNMENT INCENTIVES' for businesses to Out Source jobs, most of which were high tech jobs, to other countries and the Middle East as well.

With all these different factors coming into play, I truly doubt the tax rebate will stimulate anything. But at least I can pay my utility bills. That is 'IF' I don't loose my home first.