The US government has recently introduced a program to help combat the downward spiral of the economy. The Economic Stimulus Package is free money given to taxpayers in hopes to jumpstart the economy.
$600 to each taxpayer, $1200 to couples, and $300 for each dependent child will be given out. The hope is that this ‘free money’ will be used on shopping sprees to stimulate the economy, as the proposal suggests. Another purpose of this package is to help offset the costs of rising gas prices. At over $3.50 a gallon in places, many people are unable to buy much else.
As far as the rebate checks for individuals go, there are no stipulations on what the money must be used for.
The US government is using $145 billion to pull this off. Some economics say that this is about the right amount of money needed to give the economy a big enough boost to hopefully avoid a recession.
This package also includes tax incentives for businesses if they make new and major investments during the year.
It is too early to tell if this program will end with its intended results. As it usually is with the economy, it will be a game of wait and see.
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