Luxury Consumers Not Planning To Spend Their Rebate Checks

by Laura Malesich (RSS feed)
Apr 18th 2008 at 11:03AM

Congress rushed the Economic Stimulus Package through so we could jump start the economy by spending our new allowance at retail outlets. But don't expect the uber-wealthy to be contributing in that fashion. When polled, more luxury consumers stated they would rather save, invest or pay down debt with their rebate checks than spend it on something for themselves. Considering these high-end buyers typically spend double of what regular households will, their lack of participation in this movement is bound to send shock waves through the economy and back to Congress who may not get the results they had hoped for. That just means the rest of us who make less than $100,000 per year need to take our checks and spend, spend, spend! Is that why we aren't rich in the first place?

Tags: consumers, government-rebate, rebate-checks

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Reader Comments (Page 1 of 1)

Henry Apr 18th 2008 11:52AM

Isn't paying down debt still spending? You're spending on things you already own (or that own you).

JXG Apr 18th 2008 4:15PM

Who surveys billionaires on spending less than $600.00? Makes no sense, seems like a bogus survey.

Bob May 1st 2008 8:14PM

Uh, if you're making $100k or more (actually $87k is the magic number), you get squat from the stimulus package. Zero. Nil. Zilch. Nada. So that's a totally useless survey/factoid, since those surveyed WON'T GET A "REBATE" CHECK.

beanspants Apr 18th 2008 5:02PM

Bob, though you are 100% correct, they were talking "households", and the $100k cutoff is for individual. I believe the household cutoff is at $100k each, or $150k for a household.

The average surveyed only had $173k, or $86k each, and 60% expected to get a check, so the median is much lower than the average among those surveyed.