Jennifer, over at My Organized Biz, tagged me for a meme about rebates.
She asks:
1, If you could do whatever you wanted, how would YOU spend your $600?
2, Is that the same or different from how you actually plan spend it?
We’re *lucky* in that the government has decided, in its ridiculously inefficient and nonsensical way, to throw more money our way simply because I’m married and I have children. So, I’m getting more than the $600.
1, If I could do anything with the cash, I’d spend it in my garden. Plants are to me what shoes are to other women. I’d buy more plants. I can’t help it, it’s catalogue season and my crocuses – crocii? – are blooming. It’s inspiring. So plants and some hardscaping.
2, Realistically, the cash will be used (as it will for most of the country) to pay down debt. Specifically, I imagine that we will apply it towards our tax liability for 2007. As a small business owner and independent contractor, we tend to owe each year. So, thanks to the government, we owe a little less now.
I’m supposed to tag six other blogs for the meme… I’m tagging Mark and Sarit at BizLevity, Chris and Jean at Doing Biz Abroad, Rick and Thursday at One Vote Matters, Tom at 501cFiles, Blain at Talk Stock Trading and Jim at Boss Hatch.
But let’s not limit it to the bloggers. Readers, I’d be curious to know what you’re planning to do with the money… and whether it’s what you want to do with the money!
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
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!!!!!!!!!!!!!!
I’d put it toward turning my back dirt into a back yard.
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?
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.
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.
IMHO the impact on the economy will be squat and certainly not worth the hundred million-plus dollar cost of it. What a joke!