Will the economy crash when government checks run out?

[tombogan03884]

http://news.yahoo.com/economy-crash-government-checks-run-100600863.html

Will the economy crash when government checks run out?
The Week – 8 hrs ago

    

Millions of Americans are getting by thanks to extended jobless benefits, but everything might change when the payments stop arriving later this year

Many American families are already struggling as the recovery falters, and for some the pain will soon get worse. Nearly $2 in every $10 Americans had in their pockets last year came from government subsidies such as jobless benefits, food stamps, and Social Security, reports The New York Times. And at the end of the year some of that money will dry up, as extended unemployment payments and other benefits worth an estimated $37 billion (as per Moody's Analytics) expire. Will that kill what's left of the recovery?

Yes, it could slam the economy: We're draining money from the wallets of millions of Americans precisely when we should be pumping it in, says Steve Benen at Washington Monthly. Families are going to "start losing their buying power, which necessarily means less economic activity and a weaker overall economy." It's preventable — we could extend jobless aid, food stamps, and other hard-times programs, but "Republicans don't want to."
"Anti-stimulative policies to intensify"

Nonsense. This is a drop in the bucket: Calling the loss of $37 billion a "'big hit' to the American economy is absurd," says Ed Morrissey at Hot Air. Our economy amounts to around $14.3 trillion a year, so we're talking about 0.26 percent of our GDP. Losing benefits will indeed be tough for the unemployed individuals who have been receiving these checks. Halting the payments will help the rest of us though, because we're borrowing money to cover these checks, and that kills future growth.
"Will Congress extend jobless benefits again?"

We should borrow now, and cut spending later: Extending these benefits is the smart thing to do, says David Frum at Frum Forum. We're "putting purchasing power into the hands of unemployed people who otherwise would see their incomes drop to near nothing." In the long term, we can deal with the deficit by cutting spending, but that can wait. "It's the unemployed who face a ticking clock. Let’s address their troubles first."
"Debt talks don't need an ambitious solution"

[Rastus]

I honestly have thought for 25-30 years that it would take a total economic collapse to straighten this nation out.  Now, I don't know.  Early on it was predicated on the people who were alive in the 80's.  Now that they have been replaced I we may get even more broken.

[tt11758]

Well, inasmuch as the economy has pretty much crashed already...........................

[tombogan03884]

Just to clear up any confusion, this poll is aimed at what will happen if the Govt DOES stop sending out checks.
The other poll I posted is focused on whether or not that will actually happen.

[Badgersmilk]

Notice how every time they bring up "the checks not going out" in the media they refer to Social Security checks only?  Cause if they even suggest that welfare checks weren't going out...   

RIOTS IN THE STREETS!  BUILDINGS SET ON FIRE!  THE SOUND OF GUN SHOTS WOULD FILL THE AIR!

[Sponsor]

[tombogan03884]

Notice how every time they bring up "the checks not going out" in the media they refer to Social Security checks only?  Cause if they even suggest that welfare checks weren't going out...  

RIOTS IN THE STREETS!  BUILDINGS SET ON FIRE!  THE SOUND OF GUN SHOTS WOULD FILL THE AIR!

Yeah, well, if they under rate the old folks to much they may getting a big bloody surprise.
They are old, they are already retired, the next big " life event" is going to be dying, they have very little to lose and they are PISSED !
I was in Wally world the other day going past the bargain book bin, This lady was browsing through it, this other lady, about 4 ft 6, and 70+ asks "anything good?" other lady says, " Just this book by Obama." Granny fires off , " They should burn that one, I HATE that son of a bitch !"
I couldn't help it, I laughed out loud.  
Go Granny !    
My Father and Mother, same thing, they have never agreed on anything in the last 50 years,( been divorced for about 40 of them    ) but they agree BO sucks.

[TAB]

I realy don't know, but I can tell you its going to hurt every body if they do.

[twyacht]

Pretty much sums up my vote. Reset button has to start somewhere.

[Rastus]

I realy don't know, but I can tell you its going to hurt every body if they do.

NO PAIN NO GAIN

Let 'er rip potater chip.

[Timothy]

The wife is a bit worried she won't get her disability check.  Thankfully, it's not that big that it will upset the budget too much. 

I told her it's just posturing by Obama and his pathetic excuse for a Treasury boss.  If he stop SS checks, Vets bennies and the like, neither one could ever run for more than the town Dogcatcher again..