Tax Rebate Checks Considered

President Bush and Congress, concerned about the potential cost of government assistant programs should a deep recession hit, are considering offering $800 rebate checks for singles and $1,600 rebate checks for married couples. The idea is that people will spend that money which will boost the economy. The rebate program could cost $150 billion, but the government estimates that spending $150 billion could save them $500 billion. Will it work? It could, so long as people spend the money, but with everyone feeling a crunch, many may use it just to pay bills and save, leaving the government in a potentially worse situation.