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Rebates could stave off long recession
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| Contributor | Gerald Farinas |
| Last Edited | Gerald Farinas Feb 10, 2008 12:29pm |
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| Category | News |
| News Date | Sunday, February 10, 2008 06:00:00 PM UTC0:0 |
| Description | The Honolulu Advertiser
Despite remarkably quick passage, the economic aid plan and its cash rebates may come too late to prevent a recession this year. For many experts, however, the $168 billion boost to the lagging economy may mean the difference between a short downturn and something much more serious.
The measure that President Bush plans to sign this coming week will send government payments to more than 130 million people. Checks that will start showing up in mailboxes in May range from $300 to $1,200; households with children get an additional $300 per child. Businesses benefit, too, through tax breaks to increase investment spending on plants and equipment.
The tax relief is intended to jump-start the economy. Politicians, worried about a recession in an election year, put aside their normal bickering to speed the proposal through Congress.
Nonetheless, there is debate over how effective it will be. Critics say debt-burdened consumers will use the money to pay bills rather than spending the checks and spurring growth.
An Associated Press-Ipsos poll found that only 19 percent of those surveyed said they planned to spend their rebate checks. Forty-five percent said they would pay off bills, while 32 percent said they planned to invest the money. |
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