The centerpiece of U.S. government efforts to rescue a national economy, that is slowly falling into recession. The main goal is simple - to make people spend more money. But this apparently easy target is harder to achieve than it might seem. Why should people start spending more money than they are used to? Everybody knows what they can afford, have no other option than live according to it. People with invariable income only rarely exceed their usual expenditures. But if you want them to, you should, well, except of literally giving them some extra money, give them a motivation. Congress, President Bush, the Federal Reserve and Wall Street came up with a slightly unusual way to motivate them. Recently, Bush signed legislation to rush rebates ranging from $300 to $1,200 to millions of people. Firstly, they must file their 2007 tax return. The authors of the idea believe the people who receive the rebates will not be able to resist spending it. However, according to a research, only 19 % of respondents are planning to actually spend the money, while the rest of them claim to save or invest it, or, mainly, just pay off the bills. "We have come together on a single mission — and that is to put the people's interests first," said Bush, who called the measure "a booster shot for our economy". It might appear as an easy solution, but it naturally evokes a question & Where will the U.S. government get billions of dollars to pay for the rebates from? Altogether, it is estimated to cost about $117 billion over the next two years. The government will have to borrow more money, enlarging the budget deficit. The obvious gameness of this decision is an unmistakable proof, that the necessity of rescuing the already wobbling economy is urgent.
Edited by: Katarina Bosanska
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