Fed Stimulus: Will it Be Spent or Saved?
If you haven't already caught the news of the governments speedy work to get cash money into Americans hands via a stimulus package cruising through Congress here are the details.
The House passed a bill that includes $146 billion of money set to start going out to working and non-working Americans beginning as early as this April. The Senate is working on its version to the higher tune of $161 billion.
The goal: get money to people so they spend and get the economy growing.
Will that happen? If you received a check for $600 to $1,600 right now, what would you do with it?
Well, two separate surveys found that the majority of those surveyed would use the money to either pay down debt or put into savings. Interesting! Paying down debt from previously financed purchases and/or putting the money into savings does not add stimulus to the economy at all.
Our government faces some tough challenges right now. The Fed makes drastic cuts to their Overnight Rate with arguably little effect. Congress jumps in to put checks in our pockets and that might not do the trick.
I know what I'd do with the check, save it or pay down debt. What will you do?
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