Americans Plan to Save, Not Spend, Tax-Rebate Checks, Poll Says

[marmar]

from Bloomberg:



Americans Plan to Save, Not Spend, Tax-Rebate Checks, Poll Says

By Matthew Benjamin

Feb. 28 (Bloomberg) -- The stimulus plan Congress approved this month may provide less of a jolt to the U.S. economy than intended, as most Americans plan to save rather than spend their tax rebates, a Bloomberg/Los Angeles Times survey shows.

Only 18 percent of respondents said they will spend their rebate on purchases, while slightly more than three in 10 said they prefer to use the money to pay off debt, and a third said they'll pocket it.

``People in Washington assume that about 40 percent of the money will be spent,'' said Douglas Elmendorf, a senior fellow at the Brookings Institution, a Washington-based research organization. ``Much less would be disappointing.''

Respondents are increasingly gloomy about the economy's course. A majority said the U.S. is already in a recession and that President George W. Bush hasn't done enough to tackle the home-mortgage crisis.

``It's time to circle the wagons and pay down debt,'' said Chris Danvers, 50, of Sacramento. He said he's noticed that business is slowing in the upscale steak house where he works as a waiter, so he will pay off the debt he recently incurred buying a refrigerator and a couch.

Bush and congressional leaders agreed on a $168 billion stimulus plan that has as its centerpiece tax rebates for most households. Taxpayers are expected to start receiving checks in May, ranging from $300 to more than $1,200 for some families. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aLzL2JgIERvc&refer=home

[Deja Q]

1. Save and/or pay back debt, which will help their credit ratings AND pick up the dollar's value

slightly.

Or at least peoples' credit ratings... how it'd help or hurt on a nationwide level remains to be seen, but there's still plenty we can all do to turn things around...

Hey, it's a start, and I hope I'll be forgiven for thinking positive slants rather than negative ones. :D

[SoCalDem]

2. We were planning on saving it, but may actually use some of it for a rehearsal dinner

for our son's wedding.. dinner for 40 at a farily nice restaurant might be a bit more than what i carry around in my wallet :scared:

[lumberjack_jeff]

3. I'll use it to pay my taxes.

It may prove to be economic stimulus in dumbfuckistan, but not here.

[Egalitariat]

4. Americans don't have the ability to save***

nm

[conflictgirl]

5. Well...duh!

I am sure as hell not spending mine. I am going to be saving it to get through lean times ahead. Actually the lean times are already here for me so the extra money will just be to help keep my head above water a little longer!

[marmar]

6. I'm not spending it either....Although if gas and groceries keep accelerating....

Maybe I'll be spending it on basics.

[MadHound]

7. Yep, either save it, or use it to pay down debt.

Americans know that there's an economic shitstorm coming, and are hunkering down to weather it out. They're not going to go out and splurge, buying big screen TVs like this administration hopes.

Me, I'm planning on converting mine to Euros, since they will hold their value better than dollars.