Bush to Unveil Economy Stimulus, Credit Improvement?

With all the media-induced hysteria over a possible recession in the works currently, many are wondering if the answer to our current economic woes lie within government action or not. Many economists tend to think that the government should take more of a hands off approach when it comes to the economy, especially since politicians are not economists and don’t fully understand the cycles of the economy and what make interest rates in relation to prime rate credit go up and down, as well as what might help the economy vs. hinder it more in one way or another.

Bush has said that he is proposing an economy booster (stimulus) package that would involve both incentives for businesses small and large to spend a lot more on business expenses in the year 2008, and individual tax rebates for those that make one hundred thousand dollars or less per year. At least, that’s what the speculation is so far, at the time this prints, who knows, there may be a full blown offering on the table before congress.

Many think that a package like this would only be a temporary fix and may not be enough to prevent a full blow recession of the likes we have not seen since after 9/11 occurred in the year 2001. A recession is when the economy is essentially in the dumper for three months in a row, and consumer spending and confidence is down, and many times I think that we are already in the middle of one, although some insist we are not, but we are on our way there.

The talk so far is that there would be one rebate offered in the form of a few hundred dollars to those filing singly, and a larger tax rebate issues to those that filed as married couples. Some of the things you can do to prevent from going further into debt during times like these is to vow only to use prepaid credit cards and low apr credit cards, and try to curb spending a bit if you can, but only if you need to. Bush’ hope is that this economic stimulus package will help us prevent a full blown recession, and that it can help get the economy and people’s attitudes and fears about credit, mortgages and a recession, moving in the right direction, toward a positive. Of course, it doesn’t help that many major employers are laying off right now, and it is all a cyclical environment.