That question should tell you, right off the bat, that we’re gonna have a problem. The whole point of this unprecedented disbursement is that the .gov wants people to go out and spend. Not save. Spend. If most people take the money and sock it away in case they lose their job or something (which, really, is probably the best course) then they are not injecting it back into the economy, the big ‘shot in the arm’ for the economy doesn’t work and we’re back to square one.
On the other hand, lets be realistic, unsound behavior with money is partly to blame for a great deal of the current economic situation. The same retards who make $35,000 a year and lied their way into a $800,000 house are the same retards who will grab that .gov check and run down to the WalMart and spend it the same day they get it.
Will I be doing my part for the economy by redistributing this money among various industries and businesses through commerce? Maybe. I think things are going to get a lot worse before they get better so I may wind up sinking it into relieving some debt burden (got an upcoming wedding that’s growing in cost every day it seems), or I might use it to prepare the girlfriend and I for the anticipated economic upheaval by getting more food put away.
Regardless of whether people spend it or save it, I think its not going to do anything to make a major impact in the current economic situation.
My own opinion, as it has been for the last couple years, is to circle the wagons and do what it takes to put oneself in a position of decreased vulnerability. What is that decreased vulnerability? Minimize or eliminate debt, have cash reserves on hand, plan for reduced income or job loss, buy tangibles now that will go up in price later…very basic elementary stuff.
If you have the bucks, now (or not too long from now) will be a great time to buy property… or, really, any other big-ticket item that people are going to be wanting to get out from under. Sometimes someone elses misfortune is your gain. If you can live with making bank off of someone’s heartbreak, you may get some bargains. In many cases you may be helping them out by giving the $85,000 for a home they paid $155,000 for two years ago. Im of mixed mind…part of me is a pragmatist and thinks that theres no reason to be reluctant to capitalize off of someone elses misfortune but another part of me is too compassionate and empathetic to want to be part of someones dreams collapsing (even if they brought it on themselves). Usually, for me, it comes down to what I believe is best for me and the girlfriend. Your mileage may, of course, vary.
Back to my original thoughts, though… this whole .gov rebate plan just seems like rearranging deck chairs on the Titanic. When the captain issues buckets to the passengers and says “bail” its time to do exactly that…right towards the lifeboats.