Stimulus' Boost Seen; How Long It Lasts Unsure

Economists debate impact, as inflation outpaces wage growth

By Kevin Spak, Newser Staff

Posted Jun 27, 2008 2:22 PM CDT

(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.”

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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Stimulus' Boost Seen; How Long It Lasts Unsure

Economists debate impact, as inflation outpaces wage growth

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Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

Ignore Glimmers of Hope, Economy's Still in the Tank

If Obama takes his foot off the gas, it'll be 1937 all over again

Stimulus Boosts Americans' Incomes

Consumers tuck funds away: Savings rate hits 16-year high

Personal Spending Slows to a Crawl in February

Inflation cooling, but consumer confidence is down

Economy Shows Signs of Life: GDP Jumps 2.5%

Meanwhile, new unemployment claims fell

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Stimulus' Boost Seen; How Long It Lasts Unsure

Economists debate impact, as inflation outpaces wage growth

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OTHER STORIES ON OUR RADAR

inflation • economic indicators • wages • income • consumer spending • economic stimulus package

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

Ignore Glimmers of Hope, Economy's Still in the Tank

If Obama takes his foot off the gas, it'll be 1937 all over again

Stimulus Boosts Americans' Incomes

Consumers tuck funds away: Savings rate hits 16-year high

Personal Spending Slows to a Crawl in February

Inflation cooling, but consumer confidence is down

Economy Shows Signs of Life: GDP Jumps 2.5%

Meanwhile, new unemployment claims fell

About Us

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Newser By Users

Community

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What is Newser?