Filed under: Other issues, Consumer experience, Market matters, Economic data, Personal finance, Federal Reserve

With the prospects of a full blown recession looking more and more likely, everyone is hoping that something can be done to ward off the dreaded “R” word. Could tax rebates be the cure that we are looking to find?

One thing is for sure, no one is going to complain about getting a quick check from the government, but will rebates really be enough to keep the country out of a recession? The answer, sadly, is probably not. What they could achieve however, is to reduce the pain and the length of any recession that may occur this year.

Looking back to 2001 we get some evidence that tax rebates could at least provide some relief. When the country was headed into the 2001 recession, President Bush decided to add refund of $300 for individuals and $600 per household. The 2001 package, while not able to stave off a recession, is credited with part of the reason why the recession was so short lived.

Continue reading Tax rebates to the rescue?

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This entry was posted on Friday, January 18th, 2008 at 2:31 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.