How would Americans spend stimulus money?


The rebates could total up to $800 for individuals and $1,600 for married couples.

NEW YORK (AP) — Is an extra $800 in your pocket enough to change the course of the ailing economy?

President Bush, Treasury Secretary Henry Paulson and members of Congress seem to think so. Washington is talking about issuing tax rebate checks in hopes of staving off a recession.

And people around the country, many of them struggling to pay bills, staggering under credit card debt or worried about their financial futures, aren’t about to turn them down.

“I would probably take that money and breathe a sigh of relief for one month,” said Jennifer Simon, who works at a small communications firm in Long Valley, N.J., and spends $1,500 a month on child care.

“It’s not a permanent fix,” she said, “but I wouldn’t send it back.”

Taxpayers got smaller rebates, $300 per person, under a similar plan in 2001. There is debate in economic circles — as usual — about whether those checks warded off recession or went straight from the U.S. Treasury into Americans’ savings accounts.

This time around, while some people may put the rebate toward a big-ticket item like a flat-screen TV, many echo Ginger Scott, a home-health physical therapy worker in Kansas City, Mo. She says she wouldn’t buy anything exciting.

“I think I had too much exciting previously,” said Scott, 52. “Exciting will kill your budget.” Instead, she said she’d pay off a credit card bill and save what’s left over.

President Bush on Friday embraced as much as $150 billion in tax relief, most of it for individuals, to jump-start the economy. He said the country would be “just fine” if Congress passes the stimulus.

While the administration is avoiding specifics, congressional aides said the White House was considering rebates of up to $800 for individuals and $1,600 for married couples. The checks could arrive by late spring.

In interviews, Americans gave a range of ideas for how they’d spend the money, some of them reflecting the pinch of a difficult economy in which the costs of food and gas are rising and jobs are harder to come by.

Take DaMel Nixon, 33, a mail-house quality control supervisor in Lansing, Mich., who used to be an avid buyer of music but is unlikely to use his $800 to splurge on CDs because he needs money for gas.

“I’m going to need that $20 to put in the tank,” he said.

In Fargo, N.D., Doug Benson said he would spend half of the $800 on bills and half on new beds for his children. In New York City, Landy Ung said she would plow the money into her startup Internet business as an incentive for her salespeople.

And in Kansas City, Jenise Lemmones said she’d let her 8-year-old granddaughter, who lives with her, call the shots: “She just likes to go to McDonald’s and the movies.”