How you just got a $1,000 tax rebate
What if the federal government handed you a check for $1,000? Would that go to that new pair of shoes you've had your eye on? Dinner for the family? Credit card bills? The possibilities are endless. A solid grand to 117 million taxpaying households in the U.S. adds up to a lot of money.
Jim Cramer can just see it now. People would rant about how the rebate would reverse the direction of the federal government's budget deficit. It would head back to the horrendous levels of 2009.
$1,000 is approximately 1.3 percent of household income. That's not chump change to most.
"Some would argue it would mean nothing to the U.S. economy or the consumer's budget anyway. Only a rich person would be that insensitive," the "Mad Money" host said.
Here's the good news: you could have already received that $1,000, but from another source. Pretty sweet, right?
It landed in your pocket from a combination of the Persian Gulf nations, non-Opec trading partners, and U.S. oil companies.
Thanks, oil!
These entities outside of the U.S. have been making money hand over fist for years from oil, and Cramer thinks it is about time that this cartel that kept oil unnaturally high priced for so long return it back to hard working citizens.
The Fed has been trying for a long time to create additional disposable income to stimulate demand and purchase power. It can't do that by cutting taxes, increasing wages or cut the spending necessary for people to maintain their job and lifestyle. But oil? That's perfect.
Americans spend approximately $2,912 every year on gasoline. The drop in oil prices has led to a decrease of $1,000. Thus, an increase in disposable income that the Fed has been trying to create.
Yet for some reason instead of celebrating this fabulous rebate, many seem focused on how hard the energy industry will be hit and possible job cuts.
To clarify, only 1 percent of job growth in the past four years has come from this industry. Not 1 percent of jobs, that's 1 percent of growth.
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Only one small oil company has gone bust and had 700 layoffs. Does Cramer expect there be plenty more? Yes. But the $1,000 is needed far more in households than the oil kingpins.
"I say the crimping of the domestic oil industry is a small price to pay for 117 million households that were spending way too much at the pump until just six months ago," he said.
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