How Much Stimulus Costs YOU.. Now and Later..

Do the Right thing, an interesting site.. does the math.

assume your yearly income $40000..

A family size of 2 it costs you $56,260 with your burden $302 Monthly and annually $3,624total you will pay $108,727 total.. which is a tax increase 29% (calculated at 5% interest over 30 years)

Never mind the fact that in the mean time, that burden and the artificially raised levels of CASH into the economy will result in higher inflation than if it were all left alone.  The inflation alone is not only going to rival that of the end of Carter’s presidency, it will eclipse it.  An interesting take on inflation caused by all of this mess found here:

“Another relevant misconception along these lines is that falling investment prices reduce money. This isn’t true. The money supply is totally independent of investment levels. Plunging asset prices do not destroy money despite some fringe deflationists actually making this argument. They claim that since stock, commodities, and house prices have fallen, money is being destroyed. But this is not how money works in the real world.”

The article explains the difference between what is now “perceived” as “deflation” due to falling stock prices and valuation of hard goods, and what has actually happened out of fear and real market forces.  Deflation, as the author contends is a contraction of the money supply, and THAT is not the case unless we pretend the bailout crap sandwich never happened.

Tags: deflation, Inflation, stimulus