Don't Expect Rebate Checks to Rev Economy

When Uncle Sam hands out money this summer, expect most consumers to use it to shore up their own finances rather than to jump-start the overall economy.

Beginning in May, rebate checks ranging from $300 to $1,200 will begin arriving in mailboxes throughout the country, thanks to President Bush's multibillion dollar economic stimulus package.

"Payments will be largely completed this summer, putting cash in the hands of millions of Americans at a time when our economy is experiencing slower growth," says Henry Paulson, Secretary of the U.S. Department of Treasury in a statement released earlier this month. "This package of payments to individuals and incentives for businesses to invest will support our economy as we weather the housing downturn." ...