Although distribution of tax rebates (estimated at $ 106.7 billion) only began in the 2nd quarter of 2008, 1st quarter statistics from the US Bureau of Economic Analysis showed improvements in the US economy.

Gross Domestic Product grew 1.0% in the 1st quarter of 2008 versus only 0.6% in the 4th quarter of 2007. Profits of financial corporations increased by $ 14. billion against a $74.4 billion decrease in the preceding quarter –indicating some recovery from the subprime crisis. Overall corporate profits decreased by only $5.2 billion in the 1st quarter of 2008 versus a $ 52.9 billion decrease in the 4th quarter of 2007.

What about Fannie Mae & Freddie Mac? (in the next posts) 

image from Microsoft Clipart, graphics by Ren Garcia

Estimated rebates for 2008 provided by the Economic Stimulus Act of 2008 total $ 106.7 billion, distributed on a weekly basis from 28 April through mid-July. Statistics from the US Bureau of Economic Analysis show improvements in Personal Incomes of US Residents.

The 5% savings rate indicate that a significant share of the tax rebates did not all go to consumption –although Personal Consumption Expenditures did go up by 0.8% (current dollars). If the Personal Consumption Expenditures are adjusted (i.e., 2000 dollars), the increase is only 0.4% –so some of the increase can be accounted for by the increase in prices.

Is the Economic Stimulus Act working for you? What did you do with your tax rebate? Spent it? Paid down debt? Saved it?

image from Microsoft Clipart, graphics by Ren Garcia

Estimated rebates for 2008 provided by the Economic Stimulus Act of 2008 total $ 106.7 billion, distributed on a weekly basis from 28 April through mid-July.

Statistics from the US Bureau of Economic Analysis show improvements in Personal Incomes of US Residents:

It looks like, on a national basis, the tax rebates are working. A significant statistic is the Savings figure of 5% of Disposable Personal Income. Despite the increase in oil and foodprices, US residents have managed to maintain a good savings rate.

Is the Economic Stimulus Act working for you?

graphics by Ren Garcia

Estimated rebates for 2008 provided by the Economic Stimulus Act of 2008 total $ 106.7 billion, distributed on a weekly basis from 28 April through mid-July.

The amount of rebate is based on:

2007 tax filings
filing status
level of adjusted gross income
number of qualifying children.

Do you feel the Economic Stimulus Act working for you?

info source: US Bureau of Economic Analysis, image from Microsoft Clipart reconstructed by Ren Garcia