Will stimulus checks really help economy?

Thursday, March 27, 2008

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Businesses are banking on it, though it may not make sense for everyone to spend it.

CLEARWATER (Bay News 9) -- Many taxpayers will soon be receiving checks in the mail.

The government's giving back $106 billion to get the economy moving, and many retailers are trying to grab those extra bucks.

Those checks, which go out in May, could be more than $1,200 for families. So retailers are planning new strategies to lure shoppers.

Sales have been slow for many retailers, especially home improvement stores. Lowes said this is a big opportunity to boost business and they're not alone.

"I'll put it towards a small little boat to go out on the the Gulf," said Pinellas County resident Cindy Whiting, who was visiting Countryside Mall.

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"Certainly clothing and shoes; basketball shoes for kids cost a lot," said Washington, D.C., resident Cheryl Kerr, who was at the mall.

"We're planning to do some home improvement on our house," said Carol Forcier, a visitor from Michigan also at Countryside Mall.

That's exactly what Lowe's, the nation's number two home improvement store, is banking on. In fact, Lowe's will have banking services for tax rebate checks. The company said it will accept and cash the checks for customers in the store.

Lowes even launched its spring campaign three weeks earlier than usual.

Not to be outdone, Home Depot is also targeting tax checks, using green incentives and slashing prices on energy efficient products such as light bulbs and energy star appliances.

The company said this calls on taxpayers to turn a short term solution into a long term investment for all Americans. But financial planner Jeff Harring, with Raymond James Associates, said Americans don't have a spending problem, it's saving they struggle with.

"Saving the money is not antipatriotic," Harring said. "It's actually a good thing because it helps us all survive the slowdown easier."

Harring suggested paying down a high interest rate credit card. Or if people decide to spend the money, try to make it something you need, instead of something frivolous.

There's some concern about e-mail and telephone scams surrounding the tax rebates. The IRS said be on the lookout for scam artists pretending to be from the IRS. They're contacting people and saying they can get your check to you earlier if you give them private information. This is a trick to get your personal information for identity theft.

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In-depth with Charlie Crist

crist Florida Gov. Charlie Crist responds to backlash from his own party, corruption in politics, critics who say he backtracked on supporting the federal stimulus, and much more. It's all Sunday on Political Connections at 8 p.m.