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The Bush administration is intent on pushing the economic stimulus plan to provide Americans some relief from the credit crisis, and also wean the economy away from a probable recession. According to the plan, taxpayers will receive a check for $600, and those not paying taxes will receive a check for $300.

In the heat of the primaries season, and possibly also due to the uncertain nature of the global economic situation, this plan has not had its fair share of debate airtime. While there are many who are sceptical of a seemingly hurriedly thought out package, they remain muted because really no one knows what will resurrect the economy.

I have two questions myself concerning the plan. First, and to me, the most important question is will I, a taxpaying non-resident alien, who has been in the US only a few months, also receive a 600-dollar check? If yes, I would greatly welcome the plan.

The other question is, what is the guarantee that people would not tuck this money away into the safe confines of their bank accounts, rather than spend it immediately, thus boosting “consumer spending”, which is what the architects of the plan envisage?

If the prevailing logic, that consumer spending went down in the past month because people cut down on their expenses because they were uncertain about the future of the economy, is true, then one really needs to call into question the presumption that a one-time gift of 600 quids would spur people to lavish themselves with purchases.

P.S.: That said, I am unsure myself how else this could have been done better. To ensure that people do spend the money, the money could have doled out in the form of store credits. But that would only heighten criticism of the Bush administration that it is after all only pro-big business.

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