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Economic Boost
By Daphne | August 28, 2008
…many economists say the boost in consumer spending is a temporary factor attributed to the tax rebate checks, making the jump in the second quarter an anomaly.
“We got a decent boost from the stimulus, which hit the economy at a time when we really needed it,” said Wachovia senior economist Mark Vitner. “It will have less of an impact going forward, though and we may even have a payback in the fourth quarter.”
More money helped boost the economy temporarily. Since the majority of people have received their stimulus checks and have spent them either paying off debt or using them to make necessary purchases, what will happen in the next few months when people do not have that extra “bonus” money to spend?
The lower dollar helped but now that the dollar has strengthened somewhat most people are feeling the crunch. Stores that rely on customers are doing everything except have a circus or carnival for each person who steps inside the doors of the store.
Since some taxpayers received their stimulus checks after the second quarter ended there may be some benefit to the third quarter, especially those who were going to use the money toward back to school clothes and supplies. Regardless of the economists who say we’re in a recession and those tho say we are not, it is more important than ever to spend your money wisely. This does not mean be a cheapskate and not buy anything just be wise with your dollars.
With the same amount of money that needs to be spent on necessities that cost more there is less available for non-essentials which is where many businesses feel the pinch. Aldi’s is booming, Starbuck’s is trying to tread water. Dining out may be a once a month event, while buying pizza is a thought out splurge.
Taking the cheap route may not yield many benefits but it may save you some money. Balance out going the frugal route with a couple of cheap aspects in your finances and you may be able to get ahead.
Topics: August 2008 |