Tax Return

by Ryan Bogart

President Bush’s Tax Rebate Stimulus Plan will not help the economy the way that it was hoped, due to the fact that the American people will not go out and spend the money. Our economy is based very heavily on consumer spending, which is the underlying problem. The Tax Rebate Stimulus Plan is a rebate for the American people providing them with three hundred to twelve hundred dollars. The idea of this rebate is for the American people to obtain the rebate and then spend the money. This will not happen for the reason that most of the American people have based their lives charging expenses to credit cards. Most Americans will use their rebate to pay off some of their credit cards or other debts. This involves giving money back to China because they have been lending the American people money. China is backing a lot of the up front money coming from these credit cards, which in turn is putting America in a bigger hole. Rather than people putting this rebate towards paying off bills, the American people need to put the money back into the United States economy so that an economical boost will be created and new jobs in the states can be created.

According to economists, 2/3 of our economy is consumer spending. This is because we have lost many manufacturing jobs to China over the last ten years. This is a major problem that has not been addressed for years. America is not producing enough products to export to the world. The Tax Rebate Stimulus Plan that Bush and the democratic Congress devised agrees to help stimulate the economy. Americans are spending too much money on consumer goods with money that they do not have. We've become a society of plastic. Past generations have prioritized more efficiently by saving money for the things they wanted. Their bills were paid first and the rest was saved.

If America manufactured more consumer goods here and exported them, our economy would not be based so heavily on consumer spending and international trade. America needs to bring manufacturing plants back into the United States. By bringing back plants to our nation., we would have products made in our country, which will make us less reliant on international goods. Also, these plans will create numerous jobs for the people that do not have college degree. President Bush and Congress say that the Tax Rebate Stimulus will create jobs and stimulate the economy, but what America really needs is help to create jobs that would bring back manufacturing plants to America, ultimately better stimulating the economy. We have become a country of retailers buying cheap goods from China while also paying their employees a lower wage to produce goods. We are spending ourselves into debt as individuals, families and government. Our government should address our economy in ways that will make it less dependent on consumer spending. The only thing this bill has done is made our economy more dependent on consumption rather than being less dependent on consumer spending. Bush and the Democratic congress is just looking for a quick fix and there is not one. Its time to start looking at the real problem not trying to cover it up to make us the American people happy.