Stimulating Thoughts

We received our “economic stimulus check” in the mail today. It will certainly be a stimulus to our family’s economy, but I’m not convinced this program will do much to stimulate our national economy. Seems to me the primary goal of these programs—whether called “economic stimulus checks” or “tax rebates”—is to stimulate voters to favor the politicians that support them. Whatever short-term impact they may have on the economy, I suspect they’ll be one more thing we’ll add to the national debt and pay for with interest over the lifetime of my kids.

A comedian quipped that it will be hard to spend the “economic stimulus checks” in ways that actually stimulate our own economy. His argument was something like what follows. “If you shop at Wal-Mart, you’ll be stimulating China’s economy. If buy stereos or TV’s, you’ll be helping Japan. If you go on vacation, you’ll be burning fuel that will help Saudi Arabia and Venezuela. Just about the only way you can help the U.S. economy is to spend it on booze or prostitutes.”

I think we can do a lot better than that, but the point is well made that in a global economy, our spending could increase the national trade deficit rather than decrease it. So what are we to do with this windfall from Uncle Sam? Here’s my shot at a few ideas that might do some good.

Charitable Giving—Consider this an easy opportunity to take a step toward tithing. For example, tithe the economic stimulus check to the church or a Christian ministry that you are passionate about…or to both! Since it comes to each of us as a surprise windfall, we can’t really claim that we can’t afford it. If we do it, we then discover, “Hey, that wasn’t so hard!” and we still have 80-90% left to spend on something else. A bigger challenge would be to give 1% of your total annual income from the check. That’s a step toward tithing on an annual basis and may still leave you with a pretty fair chunk of change to spend a different way.

Pay Down Some Debt—Many Americans have let themselves get into a bit of a hole with debt. At times, we may feel helpless to get out of the hole. This check may represent at least a rung or two on the ladder. If, for example, you have $8,000 in credit card debt and a $2,000 economic stimulus check. Just $1,500 of that could drop your credit card debt 25%. If you combine that with a commitment to keep chipping away at the rest of that debt, you could be in a situation a year or two from now where you’re free from paying all those ridiculous interest charges while getting nothing for them. If your credit cards are under control, paying on a car or any other loan you have will also save interest payments in the future.

Consider a Donation to Sand Springs Public Schools or the PTA of the SSPS school of your choice—Our administrators and teachers are trying to accomplish a Herculean task in Sand Springs. With property values that are low compared to most of Greater Tulsa, our school system’s total income on a per pupil basis doesn’t compare well to other school systems. The result is that we have all kinds of additional hurdles to clear in order to provide a top-notch education to all students in our district.

Support a Scholarship Fund—Our long-term economic health as a country is more related to the education of our next generation of kids than on any consumer products we buy today, I believe. If you have kids or grandkids, you might particularly want to consider putting this into a college fund for them. If not, you might want to help support a scholarship that gives funding to the kind of students you’d like to see succeed. The cost of higher education is growing at a rate that is probably only comparable to the rate of increase in the cost of health care. That doesn’t bode well for future generations…particularly considering the national debt we’re leaving them!

Create a Memorable Moment—Enjoy a nice dinner, an evening at the theater, a small vacation, or something else you like doing with the people you love. Consider doing something responsible with the bulk of your check, but then also do something of lasting joy with the people you love.