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Rebate Checks Go to Gas, Food, Looming Debt

Extravagant spending sprees at the mall? Not so much

By Kate Rockwood, Newser Staff

Posted Jun 1, 2008 9:44 AM CDT

(Newser) – Rather than the gluttonous splurge on flat-screen TVs and foreign vacations that Uncle Sam had envisioned, most Americans are plunking their rebate checks down on exorbitant gas and food costs--and their mounting debt. “The initial sense is that people are not running out the malls,” one economist told the New York Times. The sense of restraint may fail to buoy the economy as hoped.

In the last six weeks, the government has handed out more than $50 billion in tax rebates, but retail sales saw an uptick in only one of those weeks. “The way the economy is going, people are too scared to spend,” says one salesman who paid his entire $1,033 rebate to his mortgage company. In one survey, 51% of respondents planned to put part of their rebate toward debt.

A lender-owned home is for sale in the city of Rialto. (Getty Images)

Gas prices continue to soar ahead of summer driving season. (Getty Images)

Prices for U.S. food staples have risen sharply in recent months. (Getty Images)

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Rebate Checks Go to Gas, Food, Looming Debt

Extravagant spending sprees at the mall? Not so much

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More Newser Stories

Restaurants, Retailers Gulp as Consumers Tighten Belts

Penny pinchers shifting to generics, eating in

Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months

Q3 GDP Growth More Like 2.8% Than 3.5%

Spending and home prices are up, but not enough to help jobs

US GDP Jump Hollow if Unemployment Keeps Rising

... and it's still rising faster than before recession

Supermarkets Slash Prices

Deflation stalks the aisles; Safeway cuts below profit point

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Rebate Checks Go to Gas, Food, Looming Debt

Extravagant spending sprees at the mall? Not so much

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OTHER STORIES ON OUR RADAR

debt • recession • consumer spending • spending • gas prices • food prices • economic stimulus package • tax rebate

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Restaurants, Retailers Gulp as Consumers Tighten Belts

Penny pinchers shifting to generics, eating in

Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months

Q3 GDP Growth More Like 2.8% Than 3.5%

Spending and home prices are up, but not enough to help jobs

US GDP Jump Hollow if Unemployment Keeps Rising

... and it's still rising faster than before recession

Supermarkets Slash Prices

Deflation stalks the aisles; Safeway cuts below profit point

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?