President Bush signs the Economic Stimulus Act of 2008

The economic stimulus package will work in the short run. Some people, approximately 5%. will go out and spend their refunds. But this will do little to stimulate the economy in the long run. In order to make a long lasting economic impact, people must feel secure about their economic future. People tend to spend money when they can plan for their economic futures. For example, if they know that their taxes will be lowered, they’re more apt to buy a house, a car, or make additional financial investment. We have to ask ourselves will the cost justify the outcome. I say the cost is too high. We should use the current monetary policies at our disposal to create long term results.