Which has had a greater economic impact tax cuts or home re-financing?

Question

Virtually anyone who is a homeowner gets bombarded every day by junk mail, spam, TV and radio ads associated with mortgage re-financing this has resulted in Americans re-structuring their loans in massive (record) numbers allowing them to use their property like ATM machines.

Because the cash freed up by these actions have generated thousands of dollars more than the income tax cuts, how can Bush supporters claim that the strong economy was the result of Bush's policies?

Answer 1

Your not a homeowner if you still pay a monthly mortgage! It is unwise to use your unpaid or paid for home as a source of financing loaned money for any reason! In the past 25 years a new vein of corruption has grown where everyone and their cousin is a mortgage broker and/or sells real estate! This has caused home values because of high turnover become out of reach for the average income earner! Once again no benefits to the commoner all victimization! Mortgage lenders,title company's and lawyers are mostly who benefit from this corruption.

Answer 2

Yes, home refinancing gets homeowners extra cash that they can then spend to pump up the economy...but they *borrowed* that money, and will wind up paying it back plus interest.

Tax cuts, when we're running a huge budget deficit, do the same. Sure, they give taxpayers a little extra to pump into the economy -- but the government will have to pay that back plus interest (did you know that debt service currently is the LARGEST item in the federal budget, taking up nearly 40% of all tax revenue that comes in?).

Both things ARTIFICIALLY pump up the economy temporarily, with a high cost to repay later. Neither is a very good long-term strategy.

Of the two, home refinancing is the lesser of two evils...not only can the owner get cash, they can also get a tax break from deducting the interest (assuming they live in the home). And they can possibly recoup much of their interest losses when they sell the house, assuming it appreciates enough.

Answer 3

Bush's tax cuts are for the wealthiest of Americans only. They don't benefit. But the RIGHT has always loved telling the story that the poor are happiest when the rich are richest. Go figure. Yea dude, your right, that's how everyone I know made some cash. Low interest rates + Home Refinancing. That of course is going to hit a brick wall with home sales bottoming out, home prices so high in many areas the middle class "professionals (cops, teachers, nurses, etc. . ..) can't afford to buy, and our gentle loving President slowly prodding and encouraging interest rates UP UP UP for his banking buddies who pay LESS LESS LESS. You know, that's why I'm a deadbeat. LOL

Answer 4

Good money policies set by the Fed gave us low interest rates that made all the refis attractive. This agency is independent of political parties and greatly benefited the Clinton administration as well. Because of the reduction of our national debt the economy was performing better 8 years ago but then again wars are expensive. I am not a fan of the current administration but letting people keep the money they earn is good for the economy and the people.

Answer 5

Maybe its lower unemployment due to tax cuts. Big business will not hire new employees if they lose money due to higher taxes..The nation’s payrolls expanded by 132,000 jobs last month.With upward revisions of 42,000 to October and September’s job gains, the average monthly gain this year has been 149,000, about the level needed to keep the labor market expanding apace and prevent unemployment from rising.The hourly wage rate for blue-collar production workers and non-managers in services is up 4.1% over the past year, a growth rate ample enough to solidly surpass recent inflation readings that have been well below 2% (weekly earnings were up 4.4% over the past year). Private services up 154,000 in November. Businesses in professional services continue to expand employment, adding 43,000 last month. Jobs in health care, up 27,700 last month, also continue to be a steady source of growth.

Answer 6

so which you get to maintain slightly extra of what you have already earned,,,,,,,,that little bit of extra funds you will in all probability purchase a case of beer while you're unmarried or a kinfolk meal at a everyday rapid nutrition outlet. So specific the huge rich rapid nutrition shop gets that $25 which you acquire to maintain as a beneficiant tax decrease or the beer corporation,,, is that financial restoration or progression,,,,,, you will die from diabetes from the severe fat severe sugar rapid nutrition nutrition recurring drug companies make extra salary from extra effective drug prescriptions so on etc.

Answer 7

the sad fact is that most people have had to rely on refinancing because of their credit cards that they used to make ends meet.

If the tax cuts were so great of an impact, why then?

is credit card debt at an all time high??
is personal savings at an all time low??

Answer 8

I have a feeling it's refinancing but I don't have any hard data to back that up. Unfortunately there will still be people, with no more data than I have, that will tell you that you are absolutely wrong.

Answer 9

Take a course in Economics. The lightbulb may come on after you're hit with a cluebat.