'Incredible Shrinking Stimulus' Won’t Save the Day, Says Couric

After pushing for the government to save the day as the economy comes to grips with bad business decisions made in the credit markets, “CBS Evening News” doesn’t think the government’s tax rebate will be enough.

“The government started sending out those tax rebate checks today, but they may not do all that much to stimulate the economy because a lot of the money will be used to pay for basic necessities like energy,” “CBS Evening News” anchor Katie Couric said on the April 28 broadcast. “The price of oil approached $120 a barrel today before closing at a record $118.75.”

Despite some receiving checks between $300 and $1,200 and an extra $300 per child, Couric deemed the rebate checks as “shrinking” because of high gas prices.

“Another all-time high for gasoline as well, a nationwide average of $3.60 a gallon – [CBS correspondent] Anthony Mason now on the incredible shrinking rebate,” Couric said.

Mason was concerned that people will do something responsible with it – like save it or use it to pay down debt.

“The government is hoping we all go out and spend that money,” Mason said. “[I]n fact, more than half of those expecting a check, according to a new CBS News survey, intend to pay down their bills. More than a quarter say they’ll save the money. Only 18 percent plan to spend it.”

In January 2008, the media were as quick to hype the stimulus proposal as it was being debated in Washington.