I predicted this before tax cuts were ever passed in '01

"Congressional Budget Office Director Peter Orszag, testifying before the Senate Finance Committee on Tuesday, said the 2001 experience with the use of broad-based tax rebates to stimulate the economy suggests that expanding the pool of lower-income households who get the rebate this time would lead to an "appreciable" economic boost.

"For any given pot of money, the more you target the lower-income, credit-constrained households, the bigger the bang for your buck," Orszag said. "

from Stimulus deal struck

I know rich people and I know poor people. It's a no brainer that the poor are more likely to just spend the money. I'll spend a large portion of mine either paying off credit cards or investing in an emerging market stock fund if the market is still down. The latter being what most corporations did with theirs in '01 IMO. It's the only explanation I can think of why Bush's package led to the worst post depression recovery.

And it's about bribing the electorate on both sides. I'm not sure a stimulous is even appropriate when inflation is still on the high side, but most of both party are rushing forward on this thinks to henny penny bernanke. Trying to avoid a recession when we are not even clearly in one risks high inflation and a bad recession later. I won't be pissed if they lower the cutt off to leave my family out, but that would disenfranchise too many voters. But if we're going to have one, I want one that works this time on the American not the Asian economy (even if I will do what is best for my family with mine). John McCain has the honesty to say this and has probably just cost himself the elction for it.

Regards,
Mark