A new survey reveals the majority of Americans will spend their stimulus checks on savings and investment rather than needed consumer goods like groceries. This behavior could significantly decrease the efficacy of the proposed stimulus package.
updated: Feb 3, 2021 11:00 EST
February 3, 2021 (Newswire.com) –
A new, nationwide study of United States adults by FR Data Insights casts doubts on the potential effectiveness of the new stimulus bills pushed by Congress and the new administration. Response data suggests that recipients are unlikely to increase consumer spending dramatically and instead intend to save, invest, or pay off existing bills rather than stimulate local economies (40%+ intend to save, invest or pay bills vs. 28% on groceries or consumables. Drew Travers, head writer with FR insights notes “the common wisdom that a blanket stimulus will revive the economy is wrong at best, and dangerous at worst. A targeted solution could be more effective and efficient”. This revelation should draw policy-makers attention as they work through details of the legislation, which may need a more targeted approach to be effective.
- Only a small minority of American adults intend to use stimulus checks towards consumer spending.
- All age demographics had savings and investment as higher than groceries and recreational spending.
- All geographic regions (Northeast, Midwest, South and West) responded that their stimulus check would primarily be used for savings.
- Less than 1/2 of stimulus dollars will actually be used to increase consumer spending.
- “If there ever was evidence that the blind redistribution of wealth is inefficient or ineffective, this is it.” – Drew Travers, Chief Editor for FR Data Insights.
- “The blanket delivery of checks to American adults without consideration of need, especially when there are clear pathways to direct payments towards those in need, is at best lazy and at worst attempted bribery of the American voter.” – Drew Travers, Chief Editor for FR Data Insights.
Russ Jones, Editor in Chief
Finance Reference Data Insights
Source: Finance Reference Data Insights
biden, congress, conservative, democrat, government, house, pelosi, republican, senate, stimulus