The U.S. Treasury Secretary Henry Paulson took exception this past Sunday when Tom Brokaw, host of NBC's Meet the Press, said, "The tax rebates that were sent out earlier this year had about as much effect as a BB gun on a bear."
While there is little argument that some retailers benefited from the government's economic stimulus program, the fact remains that most of the dollars that found there way back to consumers in the form of rebates have either been spent or saved.
A number of retailers, according to a Wall Street Journal article, expect same-store sales numbers "to begin decelerating." Some point to slower sales in the second half of July at chains, including Family Dollar and J.C. Penney, as a sign that the stimulus check engine is running out of steam.
Discussion Questions: What impact do you think the government's stimulus check program had on the economy and retailing? Should the retail industry be lobbying the government for more action to address the current problems in the economy? What action, if any, do you think the U.S. government should be taking?