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October 6, 2008 10:47:45 PM CDT

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Stimulus' Boost Seen; How Long It Lasts Unsure

Posted Jun 27, 08 2:22 PM CDT in Politics,  Business 

(Newser) – The government's stimulus package has worked—for now at least, the New York Times reports. Spending rose 0.4% last month, the Commerce Department said today, buoyed by the $50 billion in checks sent to consumers. But subtract the stimulus, and income levels rose only modestly, and wage growth lagged well behind inflation.

“We’ve only started to scratch the surface on the effect … of the rebate checks,” said one economist. “Only a tiny fraction of the rebate checks have been spent.” But others say the rebate provided just a fleeting boost—and one argued the 0.4% surge was pretty puny “if you think about how much money was pumped out.”

Source New York Times

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Kelli and Mark Beaver of Duncannon, Pa., load thier purchases into the back of their red mini van at WAL-MART Supercenter in Mechanicsburg, Pa., Thursday, June 12, 2008.   (AP Photo/Carolyn Kaster)
In this May 8, 2008 file photo, shoppers load up at Costco in Mountain View, Calif.   (AP Photo/Paul Sakuma, file)
Blank stimulus checks are seen on an idle press at the Philadelphia Regional Financial Center, which disburses payments on behalf of federal agencies, in Philadelphia, Thursday, May 8, 2008.   (AP Photo/Matt Rourke)
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inflation  • consumer spending  • economic stimulus  • economic indicators  • wages  • income  • stimulus package  • stimulus response  • stimulus plan


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