re: Could have just eliminated all Federal Income Taxes for the year instead of the “stimulus”

quote:

---

The point is to boost demand. Doesn’t matter if you need it. It’s like an economic defibrillator. They want you to spend the money, not save it. Psychologically, it’s easy to spend free money.

Not saying it’s the correct approach, just saying what the rationale is.

---

To further your point about it being the wrong approach, consumer confidence is a huge influence on spending (demand, in this case). Consumer Confidence tanked in the latest report (CNBC), so people will likely save the money rather than spend it.

Rand Paul's suggestion of using the unemployment system would have been a better means of getting the money to the people who need it and avoid unnecessary deficits by sending money to people who aren't hurting.