This is both a positive and a negative for the government (but mainly good for the people). Wednesday evening the Senate voted to extend the first time home buyers tax credit AND unemployment benefits.
The positives are obvious for the people, but why is this decision a mixed bag for the government?
On the positives:
- The tax credit will help the GDP
- Unemployment benefit extension will keep money flowing for purchases, albeit small, and can provide politicians with votes
On the negatives:
- The money has to come from somewhere. Taxes anyone?
- Creating and extending a situation where there is a potential small home bubble once again
- People will end up on the official unemployment record longer
This will help a number of people but how at what expense to the nation long term?
11/5/09 UPDATE – Just an FYI, the House also approved. Unemployment will be extended an extra 20 weeks.
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