WACO, Texas – Economic specialist Ray Perryman explains how this stimulus check can affect the economy, whether people chose to spend it or put it away in their savings account.
“The purpose of any stimulus is to actually stimulate. So you hope the money will be paid directly into consumers spendings,” says economic specialist Dr. Ray Perryman.
Local residents spoke about their plans on what they will do once they get the stimulus check.
“I’m just paying bills. Probably won’t spend it all at once, spend a little on a TV, pay bills, and put a little on my back account,” says Waco resident Loren Hill.
“If I do get it, I’m going to fix my fence around the house, our piping, fix our old car, just things that we need to survive,” says Waco resident Sherry Brown.
Dr. Perryman says paying credit cards is like reinvesting in the economy.
“In a perfect world, you see more of it being spent right away. But there’s also other purposes for this package – is to help people cope with what they got to deal with the last year or so,” says Dr. Perryman.
Dr. Perryman also says the way the stimulus money is distributed will determine its impact on the economy.
“It’s probably going to be more money at once, and an ongoing flow – which will probably affect the spending patterns some people have to some extent,” says Dr. Perryman.
While most of us are looking forward to how we spend the money, there are also some who have already spent it.
“We just got back from a trip out of state for Spring Break, so we already spent our money, actually. Cause we knew the stimulus check money was coming in advance. It’s already been spent. So thanks, Joe,” says Waco resident Larry Salazar.