Friday, April 25, 2008

How Stimulating

Bush says rebates going out Monday will boost economy

Will they?

"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown," Bush said.
Let's do some math.

Most people's check: $600

If gas is $3.89/gal, that's about 154 gallons of gas.

If you have a 20 gallon tank (a high estimate for non-SUVs, a fair to low estimate for SUVs), that's 7.7 tanks of gas.

If you commute the googled-it-up American average of 16 miles, one way to work, or 32 miles round trip, that's 12.5 days of commute, per tank, if you get 20 mpg (a generous estimate for SUV drivers).

So you get about 3 months of gas out of your stimulus. That's not awful, but it doesn't stimulate the economy either. Someone check my math though . . .

I would think it wouldn't go far on groceries either, with food prices rising. And again, it won't really stimulate much if people are only spending to live. We have built this country on living to spend, dammit!

No comments: