1115.org

Consumers mark tax rebates for bills and savings - Reuters (5/7/08):

Consumers like Cindy Shea, 45, a single mother from Edmond, Oklahoma, say they have big plans for their rebates.

“I’m excited about my rebate check,” Shea said. “It will make a huge difference. I’ll be using the money for home improvements.”

We’ll have to wait a bit longer to see if people will spend, save or pay down debt with their stimulus checks. All indications and surveys point to saving/debt service, but people sometimes say things to make themselves look better to pollsters. And even though Reuters did try to present the case that the stimulative effect of the checks will be minor, including this quote is just he-said-she-said-ism, balance for the sake of balance.

I get that $600 might seem like a lot of money to some people, but not when it comes to home improvement, even when you do it yourself. (Ask Sac, he can’t even afford to pay me on the 2 $5 bets we had.) And between food and energy inflation, just because Ms. Shea thinks she’s spending her check at Home Depot, doesn’t make it so; she’ll end up spending much more than that at the supermarket and the gas station.