Tuesday, January 22, 2008

Your Tax Rebate

If you qualify for the proposed tax rebate of $800 per person or $1600 per household, what will you do with it?
A. Pay off credit cards and other debt
B. Put it in the bank
C. Spend it
Jeff made an interesting observation the other day. He thinks most people will use it to pay off debt or put it in the bank, and he thinks that's the intention behind the rather large sum... to increase the solvency of our financial institutions.

I think he may have a point. If this recession is the result of a systemic problem in the economy (as opposed to an external factor like 9/11), a little blip of increased consumer activity is unlikely to do much to ward it off.

Interesting theory.

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