The Economy - Not Unbad?

The checks are in the mail. That’s the word from President Bush who said that the first 7.7 million Americans will get their tax rebate checks next week. The money is part of that huge 156 billion dollar economic stimulus package. But given the cost these days of gas and food, most Americans may use the money just to pay the bills.

The IRS has started sending the rebates out sooner than expected. Eventually 130 million households will get some money, as much as $600 per adult and $300 per child.

Politicians originally thought families might use the money on non-essential consumer items, like TV’s. Not anymore.

The huge run-up in the cost of gas and food is costing many families up to $300 more every month. Those rebate checks are already spoken for.

This money is going to help Americans to off-set the high prices we are seeing at the gas pump and the grocery store. - President Bush

The strain of the economic downturn on middle and low income families demands, in my view, consideration of a second stimulus package. - Rep. Nancy Pelosi, House Speaker

A suspected cause of rising food prices is government subsidization and usage mandates for ethanol production. As ethanol demand has pushed the price of corn through the roof, some lawmakers are reconsidering their support for bio-fuels.

But corn is also used for corn feed so the price of chicken goes up, the price of meat goes up. - Rep Jim McGovern (D) Massachusetts

Treasury officials say that $50 billion worth of rebate checks will be in American’s hands by the end of May and the rest - by the end of June.