Consumer spending slowed dramatically as personal incomes plunged in July, reflecting the short-lived impact of $93 billion in economic stimulus checks.
Even as spending decreased, prices continued to increase - suggesting that overall consumption could decline in the third quarter. If consumption declines, the breadth and depth of any recession would likely be greater than the 2001 downturn, when consumption continued to grow throughout the recession.
Many economists are predicting the U.S. economy will slip into recession by the time voters cast their ballots in November.
It looks like the stimulus ... wasn't. It was a pathetic attempt by Bush to bribe you into forgiving him for the lies that led to the war in Iraq, and as predicted by wise observers when the stimulus was announced, $600 per person wasn't going to markedly change anyone's lives, and worse, it contributed to inflation and made things worse.
The bad news? The US Government will take it all back in next year's taxes.