I’m not impressed. First off, the Democrats enacted an $800 billion “stimulus” program in 2009. This is a smaller version of that. Why should this have any better result? Second, these programs always sound good and look good on paper. But the reality is the potential for corruption is enormous. This program will require hundreds of pages, several government agencies, debate and alteration by Congress, lobbying, and who-knows what else. Third, how is it going to be paid for? If spending is not reduced, the Treasury will issue yet more debt. That will have to be paid off just like our credit cards, mortgages, car loans, etc.
Yes, it would be nice to have a few extra bucks in my pocket from the payroll tax reduction. I know its temporary so I’ll just spend a portion and save a portion. It’s like a small gift, easy come easy go. Nothing earned, no incentive to work harder or smarter. The actual amount will be too small to make a difference to my family. However, if the amount was $400, $500, or $1,000 more per month permanently, then we’re talking real money. I’d probably de-leverage more.