How will the $600.00 check for each tax payer effect the economy?

Our recent economic problems have been related to low consumer spending, which means that business are having trouble staying profitable at previous levels. The government's hope is that the $600 or $1200 will be spent and thus help retailers, "stimulating" the economy. It might hurt inflation too, but that's not the focus right now, as the Fed has publicly announced that it is more concerned with growth than inflation.

It depends. In theory the extra boost to income will increase spending. By the multiplier effect one person's income spent is another person's income which they then spend, etc. etc. This increased spending could help (notice the word help and not fix) the current economic situation.

But this isn't guaranteed. First, the money must be spent, not invested or saved. I think a good number of people will do this. Second of all many Americans have a lot of debt, mainly from spending beyond their means. The best thing for them to do is put this towards their debt. If they spend the whole refund and more on top of that, then the whole issue is compounded.

Part of the economic downturn right now stems from the average American living way beyond their means, putting everything on their charge card and racking up a huge debt that eventually holds them back.

I think the hope the government has is that people will SPEND the $600 when they get it. Although some people will, I know alot will save it for a rainy day. Basically, giving everyone a $600 check really isn't going to do anything to help the economy long-term. I don't know what the government is thinking.

No. It seems like the government putting extra money in everyone pockets but the value of money is depreciating and it ends up with zero effect on the economy.

Finally a thinker. these checks are a smoke screen until this administration is voted out. You can give someone a fish and feed him for a day. Or you can teach them to fish and feed them for a lifetime. I still haven't decided what I am going to do with my fish. But I do know its not going to change an economy.

Thank you Mr. Bush for our extra $600.