How does the stimulus tax refund help the economy?

How does the stimulus tax refund help the economy?
How does the stimulus tax refund help the economy, why doesn't the US just pay off our foreign debts?


Answers:

masterintellectoftheuniverse:  It doesn't
2008-05-01 18:39:28
Chosen Answer
Jurijs Fadejevs:  It helps to keep GDP closer to potential level (so economy doesn't shrink so fast and unemployment doesn't rises sharply) by keeping demand higher (through higher disposable income).
2008-05-01 18:40:49
chris n:  The stimulus tax refund shifts aggregate demand to the right. That is, at any price, people will purchase more goods and service, ceterius paribus. Why doesn't the US just pay off our foreign debts? Because paying the interest on the debt and investing in schools, technological knowledge and medical research is more fruitful!--->If only that's what they were spending it on!
2008-05-01 18:45:11
bonsai:  It increases the 10 Trillion national debt by 165 Billion plus interest. That's all. Next year will be brutal, pull your pants up. I just had to sell my house, because we are moving and sold it for 240,000, but bought it in 2004 for 340,000. And I am a lucky one.
2008-05-01 18:55:41
Mogollon Dude:  It's only a big PR job .
2008-05-01 19:33:26