LadyMod at scam.com
06-01-2008, 07:43 AM
But it's what everyone predicted. Again, Bush is out of touch with reality.
Consumers Lean on Rebate Checks for Bills and Gas (http://www.nytimes.com/2008/06/01/business/01checks.html?_r=1&th&emc=th&oref=slogin)
By PETER S. GOODMAN
Published: June 1, 2008
MIAMI — The federal government is showering households with tax rebates to spur spending and invigorate a troubled economy. But many Americans are so consumed with debt and the soaring price of gasoline that they are opting to save the money or use it to pay bills, according to surveys, sales data and interviews with people from Florida to California.
Between late April and the end of last week, the Treasury handed out more than $50 billion of the $100 billion in tax rebates it plans to distribute to 132 million households. But only once in the last six weeks have chain stores registered an increase in sales, according to the International Council of Shopping Centers, whose weekly sales survey is a widely watched barometer.
“The initial sense is that people are not running out to the malls to spend their checks,” said Stuart G. Hoffman, chief economist at the PNC Financial Services Group in Pittsburgh. “It’s not quite proving to be a hot potato that’s burning a hole in people’s pockets.”
“They think they give you a check to go out and spend some money, but it’s not enough,” said Mr. Gonzalez. “The dollar doesn’t buy anything anymore. The way the economy is going, people are too scared to spend.”
At retail outlets across the country, many merchants say they have yet to enjoy a bump up in business from the tax rebates.
For some, the rebates seem like a trifling compensation handed out by the same administration whose tax cuts and expensive foreign adventures have damaged the economy.
“It’s insulting and patronizing to try to satisfy a whole nation of people with a little payout,” said Joy Osmanski, 32, an actress in Los Angeles. “To think it’s actually going to inject the economy with anything — that’s bogus.”
In lower-income households, the money has been quickly applied to a backlog of unpaid bills, or set aside amid a spirit of hunkering down.
“Times are tough,” said Lili Gomez, a 54-year-old property manager in Miami who makes about $45,000 a year. She has become the sole breadwinner since her husband, Alejandro, was recently injured at work. When the $1,100 rebate check came, they put it in savings.
“These days, you never know what can happen, and we’re at an age where we feel like we need to save,” she said.
In Dallas, Steven Snow, 60, and his wife, Julia, quickly used up their $600 on gas and groceries.
“We spent it just trying to live,” Mr. Snow said. “They wanted everyone to spend it on stuff they don’t need from Wal-Mart and Home Depot. But really, how far does $600 go?”
FULL STORY (http://www.nytimes.com/2008/06/01/business/01checks.html?_r=1&th&emc=th&oref=slogin)
Consumers Lean on Rebate Checks for Bills and Gas (http://www.nytimes.com/2008/06/01/business/01checks.html?_r=1&th&emc=th&oref=slogin)
By PETER S. GOODMAN
Published: June 1, 2008
MIAMI — The federal government is showering households with tax rebates to spur spending and invigorate a troubled economy. But many Americans are so consumed with debt and the soaring price of gasoline that they are opting to save the money or use it to pay bills, according to surveys, sales data and interviews with people from Florida to California.
Between late April and the end of last week, the Treasury handed out more than $50 billion of the $100 billion in tax rebates it plans to distribute to 132 million households. But only once in the last six weeks have chain stores registered an increase in sales, according to the International Council of Shopping Centers, whose weekly sales survey is a widely watched barometer.
“The initial sense is that people are not running out to the malls to spend their checks,” said Stuart G. Hoffman, chief economist at the PNC Financial Services Group in Pittsburgh. “It’s not quite proving to be a hot potato that’s burning a hole in people’s pockets.”
“They think they give you a check to go out and spend some money, but it’s not enough,” said Mr. Gonzalez. “The dollar doesn’t buy anything anymore. The way the economy is going, people are too scared to spend.”
At retail outlets across the country, many merchants say they have yet to enjoy a bump up in business from the tax rebates.
For some, the rebates seem like a trifling compensation handed out by the same administration whose tax cuts and expensive foreign adventures have damaged the economy.
“It’s insulting and patronizing to try to satisfy a whole nation of people with a little payout,” said Joy Osmanski, 32, an actress in Los Angeles. “To think it’s actually going to inject the economy with anything — that’s bogus.”
In lower-income households, the money has been quickly applied to a backlog of unpaid bills, or set aside amid a spirit of hunkering down.
“Times are tough,” said Lili Gomez, a 54-year-old property manager in Miami who makes about $45,000 a year. She has become the sole breadwinner since her husband, Alejandro, was recently injured at work. When the $1,100 rebate check came, they put it in savings.
“These days, you never know what can happen, and we’re at an age where we feel like we need to save,” she said.
In Dallas, Steven Snow, 60, and his wife, Julia, quickly used up their $600 on gas and groceries.
“We spent it just trying to live,” Mr. Snow said. “They wanted everyone to spend it on stuff they don’t need from Wal-Mart and Home Depot. But really, how far does $600 go?”
FULL STORY (http://www.nytimes.com/2008/06/01/business/01checks.html?_r=1&th&emc=th&oref=slogin)