Rebate Checks
I was just reading an article that stated:
Whether people actually spend the money remains to be seen. A recent Associated Press-Ipos poll indicates most people have other plans. Forty-five percent said they planned to pay off bills, while 32 percent said they would save or invest it. Only 19 percent said they would spend their rebates.
What constitutes "spending"? From dictionary.com:
1. to pay out, disburse, or expend; dispose of (money, wealth, resources, etc.): resisting the temptation to spend one's money.
2. to employ (labor, thought, words, time, etc.), as on some object or in some proceeding: Don't spend much time on it.
3. to pass (time) in a particular manner, place, etc.: We spent a few days in Baltimore.
4. to use up, consume, or exhaust: The storm had spent its fury.
5. to give (one's blood, life, etc.) for some cause.
–verb (used without object) 6. to spend money, energy, time, etc.
7. Obsolete. to be consumed or exhausted.
The first definition is the most appropriate for this discussion. "To pay out, disburse, or expend; dispose of" pretty much explains it, I think. Unless you keep it, you spend it, which I think constitutes paying bills, saving, or investing. If it goes into the economy, it's spent. Whether I spend the rebate on a vacation, clothing, buy groceries, paying a credit card, gas or electric bills, put it in a savings account or investment account it still goes into the economy. It's doing it's intended purpose.
You do realize that when you put money into a bank account, it's not sitting there in currency form waiting for you to pick it up again, don't you? Say you deposit $200 cash in your account. The teller doesn't put a paper clip on the money with a sticky note that has your name on it. It goes into the general fund with everyone elses deposits and the amount you deposited goes onto a ledger page (well, software ledger anyway) saying that you deposited $200. The actual currency (whether greenbacks, check, money order, wire transfer or whatever) goes into the vault. Some of that money is kept in the bank to pay out to people who cash checks. I'm not sure how it works past that point, even though I did work in a bank for about 6 weeks many years ago. Basically, it goes to the bank's bank so that the bank can pay their bills, payroll and so on.
What I'm saying is money you put in the bank goes into the economy just as if you spend it at your favorite mall, paying your electric bill, or putting it into the bank. I don't get how anyone can say they don't know whether it will be spent or not. If it's not under the mattress or buried in the backyard, it's going to go into the economy.
And that's the purpose of the rebate.
Whether people actually spend the money remains to be seen. A recent Associated Press-Ipos poll indicates most people have other plans. Forty-five percent said they planned to pay off bills, while 32 percent said they would save or invest it. Only 19 percent said they would spend their rebates.
What constitutes "spending"? From dictionary.com:
1. to pay out, disburse, or expend; dispose of (money, wealth, resources, etc.): resisting the temptation to spend one's money.
2. to employ (labor, thought, words, time, etc.), as on some object or in some proceeding: Don't spend much time on it.
3. to pass (time) in a particular manner, place, etc.: We spent a few days in Baltimore.
4. to use up, consume, or exhaust: The storm had spent its fury.
5. to give (one's blood, life, etc.) for some cause.
–verb (used without object) 6. to spend money, energy, time, etc.
7. Obsolete. to be consumed or exhausted.
The first definition is the most appropriate for this discussion. "To pay out, disburse, or expend; dispose of" pretty much explains it, I think. Unless you keep it, you spend it, which I think constitutes paying bills, saving, or investing. If it goes into the economy, it's spent. Whether I spend the rebate on a vacation, clothing, buy groceries, paying a credit card, gas or electric bills, put it in a savings account or investment account it still goes into the economy. It's doing it's intended purpose.
You do realize that when you put money into a bank account, it's not sitting there in currency form waiting for you to pick it up again, don't you? Say you deposit $200 cash in your account. The teller doesn't put a paper clip on the money with a sticky note that has your name on it. It goes into the general fund with everyone elses deposits and the amount you deposited goes onto a ledger page (well, software ledger anyway) saying that you deposited $200. The actual currency (whether greenbacks, check, money order, wire transfer or whatever) goes into the vault. Some of that money is kept in the bank to pay out to people who cash checks. I'm not sure how it works past that point, even though I did work in a bank for about 6 weeks many years ago. Basically, it goes to the bank's bank so that the bank can pay their bills, payroll and so on.
What I'm saying is money you put in the bank goes into the economy just as if you spend it at your favorite mall, paying your electric bill, or putting it into the bank. I don't get how anyone can say they don't know whether it will be spent or not. If it's not under the mattress or buried in the backyard, it's going to go into the economy.
And that's the purpose of the rebate.
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