Just how stimilating is a government rebate check?

The Associated Press

Treasury Secretary Hank Paulson on Thursday explains how the stimulus plan will impact the economy.

Featured Topic | Posted 36 weeks 3 days ago

Just how stimilating is a government rebate check?

Hoping to jolt the ailing economy -- and counter criticism that Washington is too divided to come to Americans' aid -- House leaders and the Bush administration reached a deal Thursday on a package of tax breaks and mortgage rules designed to put more money in consumers' hands and stimulate investment.

The centerpiece of the plan is a rebate of as much as $1,200 per household -- even more for families with children -- that could be mailed to most taxpayers as soon as late spring. The package also includes temporary tax breaks to encourage businesses to expand and create more jobs this year.

Is the rebate enough to jump-start the flagging economy? Or is a check for a few hundred dollars too little, too late?

Ben likes: Enough to get by

Investor's Business Daily

The outline of a stimulus plan has emerged from talks between the White House and Congress. Not to damn it with faint praise, but it could've been a lot worse. It also could have been a lot better.We have to credit President Bush. It appears that he did a bang-up job negotiating with Democratic leaders in Congress — though the plan has things he probably didn't want.

But the package leans heavily toward rebates, which will only create a short-term spending binge, not real, long-term stimulus.

Joel likes: Stimulus package leaves many out in the cold

Center for American Progress

By excluding from the stimulus package a range of steps that would get money to those who would spend it quickly and effectively—specifically unemployment benefits and food stamps—the president ensures the government will not get as much bang for the buck to stave off a recession. And by then limiting the amount of money that will flow to the states as part of the package—specifically by not temporarily boosting federal aid to the states’ health care programs—he compounds his error.