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US economic stimulus package stimulated us
A few months ago, I explained why I doubted that the handout, er I mean the "federal government tax refund stimulus package", would help the economy. Well now we have data to see if I was right or not.
Turns out I was wrong. Sort of.
I speculated that consumers would do what they said they would do with the extra dough: pay down bills (42%) and save it (21%). That's where I went astray. You should never believe the American consumer when he says that he's going to save money. Apparently when a pollster asks us what we're going to do with the rebate, we give the responsible answer that we think he wants to hear. But in reality, we run out and buy that flat screen TV that we've been coverting. And predictably, those at the bottom of the economic ladder are making the worse economic decision (i.e., spending more and saving less).
 
Quoting from the study by Professers Broda and Parker at University of Chicago School of Business and Kellogg, respectively:
"Between May and July of this year, the U.S. Federal Government has distributed more than $90 billion dollars worth of economic stimulus payments, or tax rebates, ... more

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