Investing in Domestic vs Foreign Markets in a Volatile Economy

How to Use Your 2008 IRS Tax Rebate Checks

The first question to ask is, “Why do I care?” All American consumers should care because the economy effects every purchase you make, including anything that is financed. Here is what you can do as an individual to make sure that your money is used as best as possible. That is in fact why we are receiving it.

Instructions
Difficulty: Easy

Step 1:
Spend it! The absolute best way to benefit our economy is to spend the money and to spend that money on products or services. In theory, spending the money should increase consumer spending which will give a boost to the economy and prevent what has been predicted as a substantial dive in the economy.

Step 2:
Buy American. If US made products are purchased, that keeps the majority of that money within the US, which in turn should benefit our economy and strengthen our dollar. Due to import agreements, much of the money will stay in the US if you purchase imported goods; however, that figure is substantially less and will have a lesser impact on the economy. Most agree that it is not possible for most US residents to buy exclusively American products; however, it’s important for all of us to be educated on the subject so we can by American when it is within our means. Be aware of this on all purchases: cars, clothing, games, etc. Have you considered where your produce comes from?

Step 3:
Don’t save it or pay off debt. If you put this money into savings, it only helps the economy on a very minor level. The reason is that the bank will invest this money in the long run, but that will only effect the economy in a very minor way over a long period of time. What our economy needs is a boost over a short period of time in order to lift us above the, arguably inevitable, decline in the economy.

Step 4:
Don’t use it as a down payment on a loan for a large product such as a car. This is the same reasoning as saving the money. This would mean a very minor effect on the economy over a long period of time.

Step 5:
Spend it now. In order to get the best result from these refunds, spend it quickly. Be aware of what you may purchase prior to receiving it. In theory, all of the money should be spent before the end of 2008, which is a relatively short time, as far as the economy is concerned.

Recap:

Spend it.

Spend it now.

Spend it on US products whenever possible.

Don’t save it.

Don’t finance it.