Many consumers spend rebates on cost of living

Source: Associated Press

CHICAGO - Many Americans allowed themselves to fantasize about large-screen TVs, European vacations and other luxuries when they learned of the federal rebates they'd be getting this spring and early summer.

Or maybe — shh, don't tell the president — they'd pay off a credit card or set the rebate aside for a big purchase in the future, notwithstanding Washington's intentions that they pump it immediately into the flagging economy.

"It's not often you get a windfall like that that you can just stash away for something you need later," said Sara Jackson, 29, a graphic designer in Chattanooga, Tenn.

But reality has interfered, in the form of ever-climbing food bills and $4-a-gallon gasoline. Day-to-day living costs have sopped up the checks for many other early recipients and spoiled their rebate fantasies. Government figures released Friday showed consumer spending inched up just 0.2 percent in April, despite widespread anticipation of the stimulus payments sent out starting late in the month.

Based on a small but broadly diverse group of consumers who tracked their rebate spending in detail for The Associated Press, there was no mass rush to the malls for shopping sprees after the payments started showing up in bank accounts in significant numbers in May. The greater economic ramifications may not be seen for months.

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Diane Swonk, chief economist for Mesirow Financial in Chicago, also estimates that consumers will spend more than half of the rebates — but much of it on the higher cost of living, citing evidence of a "very stressed consumer."

Read more: http://news.yahoo.com/s/ap/20080530/ap_on_bi_ge/spending_the_rebates

you are supposed to go shopping!!!! You brainless consuming idiots.. GO SHOP!!!

not $600. $600 is half or a third of a house payment; 2 months of groceries; 10 fillups at the pump. They are expecting too much for their relatively small bribe. In fact, they act like $600 is big money, when it is so obviously swallowed up by day to day life.

I could have paid off one of my credit cards

Carly

A corp. gets more more net $$$$ shipping the jobs to India, China, Mexico and elsewhere. It's important that the Chairmen of the Boards have bigger yachts and private planes.

:(

:cry:

I'm crying with you. :cry:

Wow, a whole 1 1/2 student loan payments. Man, now all I have to do is pick the perfect vase to go on the mantle in my new beach house.

we went up to the mountains of NC and rented a cabin built in 1823 that was in the middle of a pasture. One of the most relaxing weekends I've had in a long time. No tv, only xm for radio, massage on the deck,read two books, coffee and toast on the deck in the morning overlooking the hay pasture. Just outstanding and quiet by the ponds.

.

When I do, it's going to pay off my credit card, provided no emergencies pop up in the meantime.

It covered my electricity bill, but not much else.Every extra $ goes towards paying down my medical debt these days. One more bit of bad luck or poor health and I'm done for. :-(

to replace my old torn up car. It just wasn't enough to make any dent in the credit card debt, so I used it to buy an xterra 3 weeks ago when I got the check.

Used it up in one day.

I spent it at wal-mart... on tires for my ancient toyota.

when you shop at WalMart. :)

to replace a leaking water heater.

She told me that in April she spent $300 on gas.

my son's college tuition.

and now we have the gov't giving us back our tax money, I really resent it. Pretty much every cent me and my husband make goes back to the economy, so in a way I kind of feel like they are telling me I am not making enough money. Poor hard working folks like us is what has ruined the economy.
A few months ago I was injured on my job (day care teacher) then the owner started screwing the teachers out of pay, so I quit. That's even less money I am contributing to the economy and you know what I would like to say to bush and all the super rich folks who have messed up this country and the economy.......f*** you!!!!!!!!!!!!!
I'd rather be a nice person and help my community than give more money to companies who have taken our jobs away and then wonder why we have no money to spend.


Thank you for letting me get this off my chest!

the last quarter paid a doctor's bill...