Washington's "Stimulus" Won't Help The Economy

And while the stock market has bounced off its recent lows, it is still far below its October 2007 high, suggesting additional losses in wealth for those households that have investments in equities. For another, there is no stipulation that these tax rebates must be spent this year -- or next year, for that matter. That being the case, many recipients may well use these funds to pay down debt and/or to bolster their savings. Here's another point to ponder: a lot of goods that people buy nowadays come from overseas. Thus the effect of any increase in spending that these rebates might generate will not be all that large. As for business, even though companies must invest in new equipment this year to get a special tax break in the form of an increased depreciation write off, the record shows that lowering the cost of capital won't stimulate such investments if the demand for their products does not justify it. http://www.marketwatch.com/news/story/story.aspx?guid=%7BC974D424%2DE245%2D44EA%2D8AE8%2DE1416AF16D16%7D

Note: http://www.marketwatch....