Hold on Tight and Invest in Demerit Goods!!!

Barack Obama is proposing a stimulus package that would give financial aide to people with lower income. The supporting thought that people would immediately spend this money which would inject money into the economy. This seems all fine and dandy, but then again, what would they be purchasing? Often people in the lower class purchase goods that include: fast food, cigarettes, alcohol, video games, and cheap imported toys. Will this really help the American economy? Probably not. Furthermore, are these the industries that you want to support? Makes you think twice about why so many Americans are obease.

Furthermore, this will hurt the economy as the government has to get this "stimulus money" from somewhere. They have to get a loan from other nations, other industries, and unfortunantly, this will come at an interest rate. By increasing our debt, we increase the burden on our future generations as they will pay more money to foreign nations/businesses. This increased debt, increases the finacial burden as we must pay more in interest. As a result we are losing revenue that our nation generates now and in the future. Additional debt only increases the amount of money that we are going to have to pay to the government.

My advice to everyone, hold on tight, and invest in demerit goods (alcohol, tobacco, and junk food).