Stimulus Plan wont’ do any good, think Americans

First Command Financial Behaviors Index reported that more than two-thirds (69 percent) of Americans do not expect the newly-approved $787 billion economic stimulus package to improve their personal earnings. Moreover, Index’s February survey showed that 50 percent of the respondents do not feel confident the plan will help stabilize the U.S. economy either. Outcomes of this survey are very close to the one held in October on $700 billion economic bailout plan, when 63 percent of respondents showed they weren’t confident the plan would have a positive effect on their personal finances, and 50 percent did not believe that the bailout plan would help the U.S. economy. 

Scott Spiker, CEO of First Command, highlighted another data the survey has provided, that consumers are trying to take control of their finances by “cutting household expenses and saving money.” February survey said they were cutting expenses on leisure activities (63 percent), clothing purchases (56 percent) and electric bills (48 percent). 

Some other effects of the recession pointed by the February respondents were: 68 percent lost money in retirement accounts (5 percent increase from January results), and 51 percent lost money in stocks (4 percent increase from January). 

On the other hand, financial confidence among those who are planning for the future has been strengthening. 53 percent of December respondents with a financial plan said they did not feel financially stretched (5 percent increase from September), while confidence of those without a plan on the matter made 33 percent (4 points down from September).