Washington, D.C. - So -- President Bush is calling for a short-term stimulus package to help boost the U.S. economy. It is very likely that the package will become reality within the next few days and many Americans (companies and individuals) are happy to see it.

The plan is to deliver between $140 to $160 billion U.S. dollars to individuals and families to help re-energize the economy. The president and Congress hope that when people get the money in their hands, they will pump it back into the economy by spending it on food, clothes, electronics, and other merchandise.

The White House is currently considering rebate checks of up to $600 for individuals and $1,200 for married couples, according to The Associated Press. This is more than double the amount taxpayers received during a 2001 stimulus package where individuals got $300 checks and married couples received $600.

But in order for the stimulus package to be effective, Americans have to spend the money.

"I'm definitely going to spend mine. I will probably use it to make a car payment and hope some is left over to buy an iPod Nano," says James Crill who is married and could be receiving a check totaling anywhere from $600-$1200.

While the federal government will be happy about the iPod Nano purchase, the car payment may be considered a waste. Sure, it helps taxpayers eliminate debt -- but car payments, credit card debt, and other bill-type payments won't give the economy the quick boost it needs to avoid a deep recession. The government knows this, which is why rebate checks will be between $600-$1200 and not $6000-$12,000.

If Americans spend the monies in areas like retail, dining, movies, and family vacations -- the funds will be redirected back into the economy and the government's plan will work. If instead the rebate checks are invested, saved, or used to pay off debts -- we could see a painful 2008 on the economic front and it will be more than just high gas prices causing the headaches.

So why is the government being so generous?

They're not. The feds are simply trying to keep the suffering U.S. dollar from becoming the laughing stock of world currencies. If this happens (and it's slowly on its way to getting there), the consequences will be a distressful global economy -- at which point all laughing stops.

In reality, other economic machines (i.e. Europe, China, Japan, etc.) should be just as concerned about the U.S. economy. The dreadful financial merry-go-round will eventually stop in their respective corners if things continue downhill in the U.S.

When will we start seeing the money?

Since the IRS is busy working through 2007 tax filings, rebate checks are not likely to begin appearing in mailboxes until mid Spring or early Summer 2008. By then, we should be seeing the results of the Federal Reserve's 0.75% interest rate cut.

The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday, Jan 22, 2008 during an unscheduled meeting.

"I'm just happy to see the money." says Crill. "Now if gas prices would just go down, things in this economy may make an improvement."

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