Published: April 09, 2008 10:44 am         

My money would be safer in a sock

Commentary by Adam Smith

The North Jefferson News



In case you haven’t noticed, the nation’s economy is in serious trouble.

If you did notice, what was your first clue? Did you figure it out when you paid almost $3.50 a gallon or more at the pump? Or did it happen when you saw your grocery bill? Perhaps it was when you tried to sell your home.

President Bush recently declared that we’re in a “slowdown.” Now, “slowdown” to me is a term that should be reserved for rush hour traffic on Interstate 65. I’ve read a few reports about families who went from enjoying a middle class existence to homelessness. Things are bad.

That’s not to say the government’s been completely useless during this “slowdown.” In hopes of avoiding a new “Great Depression” our president decided to give us all a leg up in the form of free money. Anyone who filed a tax return this year will be getting some free moolah in the form of rebate checks, designed to stimulate our economy.

However, most financial gurus are telling Americans not to spend the money. We may need that money to pay off debt or just to put back in case things go from a “slowdown” to “cardiac arrest.”

Besides, when you have mortgages, credit card debt, school loans, car payments, rent and an empty stomach, the idea of going out and buying a new flat screen television seems like a really dumb idea. You may wish you still had that money when Christmas rolls around and your kids are asking for the latest and greatest Chinese-made toy.

I haven’t quite decided what to do with my “stimulus” check yet. I thought briefly about squandering it on American-made goods and services, thereby stimulating the economy and providing myself the immense joy that spending free money can bring. However, I’ve got bills and a car that requires gasoline to function properly.

I may open up a new bank account with the money. The bank of mattress sock doesn’t provide great interest rates, but if the economy crashes completely, I’ll at least know I’m sleeping on top of a little security.