ECONOMIC STIMULUS ACT OF 2008: Is it working? 3

Estimated rebates for 2008 provided by the Economic Stimulus Act of 2008 total $ 106.7 billion, distributed on a weekly basis from 28 April through mid-July. Statistics from the US Bureau of Economic Analysis show improvements in Personal Incomes of US Residents.

The 5% savings rate indicate that a significant share of the tax rebates did not all go to consumption –although Personal Consumption Expenditures did go up by 0.8% (current dollars). If the Personal Consumption Expenditures are adjusted (i.e., 2000 dollars), the increase is only 0.4% –so some of the increase can be accounted for by the increase in prices.

Is the Economic Stimulus Act working for you? What did you do with your tax rebate? Spent it? Paid down debt? Saved it?

image from Microsoft Clipart, graphics by Ren Garcia