If I get a $1,200 rebate this Spring from Uncle Sam (and it looks like I might) I will probably use it to offset some of the cost of my sons’ college tuitions. However, I might just go shopping with it as the rebate, I believe, is meant to help stimulate the economy by increasing my purchasing power.
If I spend it I will try my hardest to spend it on products made or services rendered in the U.S. A vacation to some city not close to where I live might be appropriate. Or perhaps a down payment on a GM car. Or 10 cords of wood to burn next winter.
I will try my best not to spend it on goods manufactured in Asia, because Asia is certainly from whom we are borrowing the money in the first place to pay for the rebates. And it strikes me that if Americans spend most of their rebate checks purchasing electronics or anything from Walmart, Asia will reap the benefit twice while we merely stick it to our next generation.
The U.S. chooses to go into more debt in an attempt to get itself out of an economic stall. I feel like this will be a Pyrrhic victory for us, at best.