Okay, you always figured you were in the middle. You had a house, a fairly new couple of cars, a kid or two going to college and a good job with a 401K and you had health insurance. Sounds pretty much like a description of someone in the middle by your or my estimation. This past week Congress passed a bill that according to Nancy Pelosi is a gift to people in the middle; noting that the very poor won’t get a check nor will the very rich, so why don’t you feel better about it!
Here’s a clue; according to most economists, you make less in real money now than you did ten years ago. Recessions come and go, but you still make less money. You have less buying power. If everything you bought ten years ago was at the same price now you still would be making less money. But as the inflation ball continues to rise, your are starting to feel like a Salmon headed up stream! It’s getting harder and harder to make ends meet. Good thing you have credit!
Well credit card purchasing is not what it used to be, since the Congress before this one, helped the credit card industry re-write its billing polices. Not only is it harder to file bankruptcy if you get in over your head do to say a medical emergency the credit card companies now have things like universal default (miss a payment on one card and it triggers higher rates on all of your cards) making it even harder to rob Peter to pay Paul!
Oh yeah, the stimulus package that is our gift will soon be in the mail. How much of the stimulus package is going to arrive at your house? Click here for a pretty good article on what you can expect. And when you do find out how much of a check you are going to get, what will you do with it?
Recent poles show the top five things people plan on doing with their newly found wealth are; pay bills, save it ( to pay bills later),buy a stove or refrigerator, buy electronics ( I-pod/computers) and finally spend it on local services; like taking the kids out to Mickey-D’s for dinner.
Its no wonder the majority of the political activity this past week has everyone talking about change and the economy. To most Americans the economy takes a higher place on the personal concern list than the war in Iraq. It might seem like the two are completely separate at times, but in fact everything that happens in that war, directly effects the man on the streets economy.
Higher interest rates, no bid contracts, and the very value of your dollar; all are tied to the war. The economy and war, can’t be separated. And as we head into the trillion dollar figures for fighting the war on terror, one can only wonder when all of this will end? It’s nice to know that our fighting soldier’s families will be getting a little extra money to help pay their bills. It sure would be nicer to know they were home to help them spend it!