 Is it true that every 10-15 years the stock market crashes? |
I asked a question about my simple IRA and some girl answered the question, in her answer she said that the stock market crashes every 10-15 years, is this true?
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shamieya | Will spending my economic stimulus check at the mall really help the economy? |
I was gonna put it in the bank. |
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demosthenesx
 |
Assuming that everyone went out and spent their money, yes. When you spend money at the mall, it means the business has money to pay its employees. Those employees go out and sped their earnings, and the money continues to filter through the economy. You're buying goods also creates jobs for the people that made those goods, the truck driver who delivered them, etc. etc. etc. All of that money trickles down through the economy, creating jobs and pushing the economy forward. In economic theory it's known as the Keynesian Multiplier, since every dollar the government spends (or, in this case, spends by way of giving you a tax break, which you then spend) contributes 1.X dollars to the economy when the trickle down effect is considered.
I forget off hand what the multiplier is in reality, I want to say it's something like 1.2.
Of course, if everyone else were to simply bank their check, and you were the only one that spend yours, it would have no impact... but it's in the best interest of the economy right now to spend it. :) |
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JenniferA
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Put it in the bank. That way it will draw interest and perhaps subtly stimulate the economy through investment. |
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piet lul
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you bet ye it will. |
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Cam
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It would take a LOT of us to really make a difference. The best thing to do with your check is use it to pay off debt (credit cards, etc.) or hold onto it for a "rainy day." |
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MEL S
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No-and only simple minded conservatives pray that it is so. Our economy's problems do not stem from a absence of spending, as is demonstrated by the fact that we have already been negatively saving-spending more than we own. It is a combination of really bad moves by large financial institutes coupled with tax policies that encourage the flight of capital overseas that created this problem. |
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computer wiz
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no, use it to pay your bills down,or build an emegency fund if you dont have one,when you become debt free you will have more money to stimulate the economy. listen to dave ramsey, he will help america become debt free |
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Drewshbag
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it will help the economy if you spend it pretty much anywhere, because by buying something, you put that money in circulation with the economy.
and putting it in the bank, youll have to spend it sometime, right? |
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americanfreeman
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I will most certainly help and it cannot hurt.
Spend it, save it, pay down debt.
Have at it |
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i know best
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i'm just gonna put mine into the bank first of all i dont think the checks are gonna be big enough to do any good for people that really need money. so i'm just investing mine and get some interest of of it |
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franz dumke
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If you don't spend the money on worthless things that you don't need the terrorists will win. |
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treealbero
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No, it won't. Best case scenario, most people spend the check and the ecomony shows a brief blip of increase. It won't happen because a lot of people will save or pay bills with the check. |
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BOKO
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No. Giving money away gets Washington votes. It does nothing for the economy, except maybe get more people into bad debt. |
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