Stimulus Spending: What Americans Did With $600

By: Jill Schlesinger
Topics: Financial Decoder

This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.

While ambling around the Bureau of Labor Statistics site (a fantastic trove of information), I stumbled upon a Consumer Expenditure Survey that details how Americans spent their 2008 Economic Stimulus Payments, which were actually IRS tax rebates.

Here's how 130 million income tax filers spent their $600 (for individuals) or $1,200 (married filing jointly):

2008 Economic Stimulus Package (tax rebate) used mostly for

Paying off debt	49%
Spending	30%
Saving	18%
Reason not reported	3%

Source: Consumer Expenditure Survey, June 2008-March 2009
These results beg the question: what exactly did this money stimulate and was it worth the cost? Let's think long and hard before we start doling out "Stimulus II"...

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(CBS)

Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.

Jill Schlesinger
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Jill Schlesinger, CFP®, is the Editor-at-Large for CBS MoneyWatch. She covers the economy, markets, investing or anything else with a dollar sign. Prior to the launch of MoneyWatch in 2009, Jill was the chief investment officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
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by steve8313 November 20, 2009 2:07 AM EST: Wow! What state do you live in that has raised your taxes 'cause I know you got a Federal tax break (unless your in the $200,000 income bracket)?; Reply to this comment


by ajvw November 19, 2009 11:37 AM EST: i saved mine figuring they'd want it back when the tax bill comes due. turns out i was right; Reply to this comment