How The Other Half Gets Stimulated
Big news today on the front page of the SF Chronicle--it seems the "economic stimulus" rebate checks that were meant to help mid-lower class income groups pump more money into the economy aren't doing the job so well:
An unscientific survey of Chronicle readers found that about 3 out of 4 respondents said they had already spent all or part of their rebate. Travel, regular bills and, ironically, tax payments were the most common uses for the stimulus money.But hey, good news for wealthy San Franciscans who were holding out on purchasing that second Cartier watch, or $800 Christian Louboutin heels! Now they can easily throw down on some luxury goods with money that would have gone to a few meals at Michael Minna.
In effect, the stimulus payments and high gas and food prices cancel each other out. If gas stays above $4 per gallon nationwide for the rest of the year, "that will raise direct costs to consumers by about $90 billion, offsetting almost all the stimulus," the Treasury Department's [Phillip] Swagel said.
That leaves the economy treading water rather than setting itself up for renewed growth.
7X7 Magazine, the go-to lifestyles magazine for the bored and vapid that like to look at pretty things, or read about pretty people buying pretty things while at the spa, had it's own "man on the street" reportage on the stimulus checks.
Props to my friend Enthusiastic Sean, who was sporting an Obama t-shirt and said he would be donating his money to the Obama campaign. Watch him trying to keep the enthusiasm down to a minimum, he's adorable.
Watch the video here.
War times are hard.