Tax rebate checks to boost economy? ...LOL, so anyway, what will you do with yours?!

Pres. Bush was slated to stimulate my checking account today—I’ve been logging in to my bank account all day, over and over, looking for a direct deposit that still hasn’t arrived. But when it does, what will I spend my $600 on? A few options include:

• A pair of Manolos (which I will keep forever and tell my grandchildren Pres. Bush picked out special for me and only me)
• Couple months payment on a new Sony flatscreen
• Plane ticket to Paris – on AirFrance, of course

Hmm, but none of these options stimulate the American economy, do they? What a conundrum! Either way, this absurd plan does nothing to address the reasons why our economy is in peril. So I can get all cheery about an extra $600 in my pocket, but I’ll never be fooled into believing that this plan will promote any long-term boost in the economy. Who could be, after 8 years of Bush presidency?

In any case, how do you plan on spending your tax rebate?

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2008/05/02/notes050208.DTL
http://money.cnn.com/galleries/2008/news/0804/gallery.real_people_rebates/index.html

Comments

[CNKeach]

I'll divide it into three $200 portions -- each one will go toward paying down bills. How else???

Nikki

[bam]

I intend to use my $600 to pay down credit card debt. Hope to see it in my account this coming week.

[Cam Beck]

I don't think anyone is claiming that this will result in a long-term boost to the economy, just that it will create a short-term illusion... I mean relief.

However, it will stimulate the economy, even if you don't think (as I don't) that it is the proper way to do it. For even if you put it in your savings account, it essentially increases the "cash" available in the economy by a factor of 10 (with a 10% reserve requirement). The resulting devaluation of the currency is another matter.

The economic reason anyone is proposing this is beyond me. In fact, I don't think the benefits can be expressed in economic terms, but rather in political ones. This is what seems to drive today's politicians.

It's as if we have come to expect government to rescue us from the vicissitudes of regular and healthy economic cycles. In my opinion, this is not the best way to encourage others to become self-reliant -- a quality that is necessary for the sustainability of self-government.