don't spend it all in one place!

The consumerist has been following an interesting trend among retail stores in the US. First Sears (a department store), and now Kroger (a food store), have announced a ten percent bonus for converting your economic stimulus check into a gift card (i.e. a bonus if you spend the entire 300-600 dollars at their store, and nowhere else). As the second story notes, "We expect this sort of promotion to become annoyingly ubiquitous in the next few weeks, don't you?"

Jason commented:
This concept has been along for awhile. Maybe around 2000, I can remember taking my tax refund check to Meijer and they placed that amount plus 10% onto a card. I guess this is expanding on that and possibly getting people to spend the money to buy more stuff (as intended) instead of using it to pay down bills (which in my opinion would be better).
on Thu Apr 17 14:07:58 2008

sasha commented:
Shouldn't that be, "Do spend it all in one place"?
on Thu Apr 17 16:11:06 2008

Rob the nephew commented:
on Fri Apr 18 00:34:54 2008

Rob the nephew commented:
Sorry about the blank comment my browser's wonkey.  Anyway, half of my refund went towards the laptop I am now using and the other half is going towards debt to some friends, so it's a semi-responsible use i daresay.
on Fri Apr 18 00:38:57 2008

David commented:
Well, it appears some people are spending their check before they get it. *grin* Which is actually, I expect, what a lot of people have done. It will be interesting to see whether there is any sort of bump from the checks. It's especially interesting because, for the most part, the economic boost given will not really appear until the administration is out the door. I look forward, however, to seeing the research done. Ideally, one would have started researching before the checks were announced, as people's spending patterns are obviously being shaped by the knowledge that a check is coming.
on Fri Apr 18 10:41:05 2008

Andrew commented:
What's going to be really interesting is what happens next tax season when people realize that the 600$ they got this year is being deducted from their tax refund next year.  According to my step-dad (he's a tax accountant, so I actually trust his opinion on this) the "economic stimulus check" is in actuality a 0 interest loan from the government for 8-10 months.  So for those who are considering spending it, just realize that you'll be paying uncle sam back next year.
on Fri Apr 18 14:40:30 2008

David commented:

You know, I've heard that. Here's what the IRS has to say on their FAQ:

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the Stimulus Payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

 

on Fri Apr 18 17:31:48 2008

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