$800-$1600 Rebates Expected In Bush Stimulus Plan

It looks like Bush’s economic stimulus package is going to take the form of instant cash bonuses: $800 for individuals and $1600 for married couples. That’s dumb, everyone should get Costco coupons! All kidding aside, the NYT says the ~$500 rebates granted after the 2001 recessions proved “surprisingly effective…people spent most of the money rather than salting it away in savings or using it to pay down credit card debt. A 2004 study by economists at the Department of Labor, Princeton University, and the University of Pennsylvania found that households spent between 20 and 40 percent of the rebate within three months and another third in the following three months.” Will this “wealth surge” be just what the countries needs to beat back the forces of recession holed up in our economy, terrorizing our financial well-being? Bring on Operation Cash Dump.

[AP]
(Photo: Getty)