Comments on: Burning A Hole in My Fake Pocket: Rebate Meme

By: A refund? What are you spending it on?

A refund? What are you spending it on? — Fri, 11 Apr 2008 13:25:01 +0000

[...] a refund this year but we will receive the ridiculous rebate. I’ve already posted about how I plan on spending my rebate check (looks like I’m in line with most of America). How about you? Tags: economic stimulus plan, [...]

By: Miki

Miki — Mon, 17 Mar 2008 16:35:06 +0000

IMHO the impact on the economy will be squat and certainly not worth the hundred million-plus dollar cost of it. What a joke!

By: Kelly

Kelly — Mon, 17 Mar 2008 15:00:02 +0000

The money came from the Treasury which means that the government is spending money that we’ve already collected in taxes or have borrowed.

Miki is right in that the admin costs of this plan are going to be considerable, also eating into the Treasury.

The plan was to get people to spend, spend, spend. That increases the amount of money in the economy stream and in theory, should boost demand levels, jobs, etc. (A little Reaganesque in its thinking, no?)

But statistically, it appears that most families will use the funds to pay down debt. That will not boost the economy. So, the impact from this “stimulus” may not be as grand as hoped.

By: Andrea

Andrea — Mon, 17 Mar 2008 14:44:17 +0000

I’d love to spend it on a nice Spring shopping spree or even on the house, but it’s going to be put in my emergency savings account. Unfortunately I had to buy a car and my emergency fund was depleted by it. It feels good to save, but not as good as a nice new patio Oh well. No one ever said being an adult was fun.

On a side note… I’m glad Mary Emma Allen hinted at how paying down debt is not really spending the money to stimulate the economy. I was confused by whether or note paying down debt counted as really “spending” but I guess when you think about it it’s not since those purchases you’re finally paying for are already included in the GDP.

By: Mary Emma Allen

Mary Emma Allen — Mon, 17 Mar 2008 12:12:46 +0000

From what I’ve heard, most people seem to be putting this rebate toward debt, which defeats the purpose, as I understand, of having the recipients spend it on new stuff. Also, who is paying for this? Will the government raise taxes to pay for this rebate?

By: Miranda

Miranda — Mon, 17 Mar 2008 11:56:34 +0000

I’d put it toward turning my back dirt into a back yard.

By: Miki

Miki — Sun, 16 Mar 2008 17:38:10 +0000

Kelly, I, too, would like to spend it on plants, but I’ll be sensible for a change and pay down debt.

As if the rebate isn’t dumb enough, I read that the idiotic Feds spent $42 MILLION dollars ont eh first mailing to say this is what you’ll get and will spend another $42 MILLION on a second mailing. ARGH!!!!!!!!!!!!!!

By: Ken

Ken — Sun, 16 Mar 2008 14:58:54 +0000

We would love to use it for a European vacation but will either put it towards a new roof or replacing the old plumbing in the house.

While it is always nice to think about what we would like to do that darn ol’ reality keeps getting in the way!

Ken