Why I’m Draining My Savings to Stimulate the Economy (not satire?)

Yahoo Finance ^ | 7-18-13 | Rick Newman

[dynachrome]

For several years, the economy limped along because of me. I scrimped on everything, did it myself if I could do it myself, and hoarded money out of fear that the recent recession had another dip or two left in it.

Things are different now. I’ve turned my savings into spending, rung up thousands of dollars’ worth of purchases on my credit cards and in the process paid a lot more in taxes. And I’ll probably keep spending like this until I nearly run out of money.

In other words, I’ve bought a house.

All told, I could easily end up spending $30,000 this year that would have stayed in the bank if I hadn’t bought a home. (That’s in addition to the down payment on the house itself.)

[dynachrome]

Get out there and spend all your money. Run up the credit cards. Save obozo's economy!/s

[1rudeboy]

I hate Keynesians.

[GeronL]

more like - spend it while its still worth SOMETHING

[Mad Dawgg]

"I hate Keynesians."

The thing is the people in government who say they are Keynesians are lying. Keynes himself said the government should harvest capital heavily from the citizens in the good times AND give it back in the bad times.

These so called Keynesians never get to the second part. Oh they hand out a few baubles and beads to satisfy their base and special interests but they never cut back taxes and they never give back to the people they harvested the capital from. They just keep spending on pork and yelling the rich aren't paying their fair share.

[aquila48]

A true ignoramus...

Does he really think the money one has in a bank as a savings is dollar bills sitting in a vault somewhere?

[KarlInOhio]

Funding government. The most distressing part of buying a house is the tax bill. I paid nearly $7,000 in mortgage taxes for the privilege of buying a house, and the seller paid nearly $10,000 more in city and state transfer taxes. What’s worse is that many people don’t anticipate such large sums when they prepare to buy a home, because they forget the government has a big paw in the middle of the transaction.

Is this a New York thing? Where I live the deed transfer tax is 0.3% + $0.50, so only $600.50 for a $200,000 house. Recording a mortgage costs $28.

[Go Gordon]

Funny, I just retired from my 32 year career at age 53 to start a new endeavour until I retire permanently. I moved from my fulltime home (and sold it) to my shore house fulltime, where the property taxes are 40% what I was paying. With the house, two cars and boat all paid off, the bills for insurances, utilities, and taxes are aroung $900/month. Leave a 6 digit salary would have been difficult a few years ago, but Its easy to do now that I see where this country is headed.

I refuse to be the takers' maker. I'm done with my high pressure career - on to something simple and enjoyable, no matter what the salary.

[cripplecreek]

I hate Keynesians.

Just yesterday a FReeper told me that the approximately $110 billion in debt NY has is different than Detroit because NY has taxpayers.

[phockthis]

sfl

[VeniVidiVici]

I hate Keynesians.

I hate Kenyans too.

[American in Israel]

California thinks the same way. While the population in California decreases, the politicians just figure that the tax base is shrinking. It is not shrinking, it is evaporating. California gives away more money in unemployment and welfare per “client” than neighboring states. So welfare junkies, not being stupid, just lazy are moving into California as those who are hard workers and are being tapped to death move out. This is a double whammy that will drive California into an early grave. Its economy will be dead and buried long before the RATS in control ever get a whiff of the extent of the problem.

The producers are voting with their feet just like the leaches. Woe is California!

[MamaDearest]

Speaking of Obozo and stimulus:

Solar group audit finds $1.3M shortfall

Snip: A state-mandated audit of Willard & Kelsey Solar Group revealed the defunct solar-panel manufacturer could not account for how it spent $1.3 million of a $5 million loan funded by Ohio taxpayers.

Fifth Solar Company Fail - $240K per worker

Snip Willard & Kelsey Solar Group, LLC received $10 Million in federal stimulus money back in June 2009. (Fox Toledo). The total amount of federal stimulus dollars given to Ohio was $150 million so this represents almost 7% of the total Ohio received. It was boasted as a huge job creator, remember that?

Stimulus Money Received

1. $5 Million R&D loan from Ohio Department of Development
2. $10 Million loan from Ohio Air Quality Development Authority
3. $3.3 Million Job Creation Tax Credit
4. $701,000 grant to train 50 current + 250 new workers

[9YearLurker]

Yeah, somehow he sees deposits in the bank as fortuitous for him when he wants a mortgage, but he seems to have a disconnect re: what his savings deposits might do when leveraged by banks for others.

[politicket]

more like - spend it while its still worth SOMETHING

Looked at the US Dollar Index lately? It is worth something - unlike the losses people are taking who bought gold and silver recently.

[BenLurkin]

Buying a house is a sound move for most people. Want this guy is talking about however is a mystery to me.

[GeronL]

he thinks he saved the economy

[mjp]

I’ve turned my savings into spending, rung up thousands of dollars’ worth of purchases on my credit cards and in the process paid a lot more in taxes.

Consumption expenditure is buying not for the purpose of subsequent selling.It is buying for any other purpose than subsequently selling.It is unproductive.It constitutes the using up of money.Funds that are unproductively expended, as a rule, either do not return at all or return only in a smaller amount, and thus are simply consumed.Funds that are unproductively expended and consumed simply disappear from their owner's possession in the long run.

Productive expenditure is buying for the purpose of subsequently selling.This is the type of expenditure that stimulates the economy and accumulates capital. Accumulation of capital is a necessity for economic progress and increasing prosperity.Increased saving (which is not the same as hoarding) provides the funds for investment, which is the first step in increasing productive expenditure which increases capital accumulation and begins the pathway of capital formation.In order to increase saving, one must make the choice to decrease consumption

Increases in taxes is like increases in consumption because it decreases the amount of funds that would be saved. Anything that decreases saving has a negative effect on the rate of capital accumulation and economic progress and rate of increase in prosperity.

[YHAOS]

Hey, Newman, I’ve an automatic 45 I would like to recommend that you get to play Russian Roulette with.

[george76]

Stimulate the economy even more by breaking every window in the house

[GeronL]

worked for Debtroit