In order to kick-start the sluggish economy, the federal government has decided to spend billions of dollars on tax rebates — that is, giving out cash to the public. The expectation was that with their newly found dollars, families would start buying things at the stores, putting money into circulation and stirring companies to hire more and produce more. This was supposed to give the economy a badly needed boost. But it is not happening. Why?
For starters, remember that individuals and families are deeply in debt. Poor and middle-class families are using their meager tax rebates — they average $600 per household — to pay off some of their debt. As for wealthy individuals and families receiving the cash, they get wealthier, but they do not necessarily start to buy more.
Poor and middle-class families across America are reeling right now. They’ve been hit hard by the rising cost of living, especially by the cost of gas at the pump, and the incredible price of a loaf of bread. For all that, retail stores are not showing any increase in business.
Meanwhile, paying all these rebates imposes a great new backbreaking load on the U.S. Treasury, which is already trillions of dollars in debt and is daily overloaded with even more debt to conduct mad wars in Iraq, Afghanistan and elsewhere. How will Uncle Sam pay off this ever-mounting debt? The answer is painful. The incredible burden will fall on the shoulders of our children and grandchildren. We are reminded of the biblical warning that the sins of the fathers will fall on the backs of their children, yea unto the seventh generation. Eight trillion dollars, compounded through seven generations — that’s a lot of sins.