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The Biggest Incentive Program Ever

Posted by Leo Jakobson on January 31, 2008

In this industry, we like to say 'cash doesn't work,' and for a variety of reasons, among them the concern that an employee given a check for doing a great job will sign it over to his or her gas utility, thereby gutting the trophy value of the award.

Of course, if you’re reading this blog, you already know that. But it bears repeating as congress put the finishing touches on what will likely be the largest single short-term incentive program ever launched. A few minutes ago, the U.S. Senate’s leadership announced they would pass the same economic stimulus bill passed last week by the House, giving married households a check of $1,200 or more (if they have children) in what at its core a $170 billion program designed to incentivize spooked consumers to start spending money on consumer goods again.

The funny part of this is that they'd much prefer you take that check down to Best Buy and splurge on a new HDTV, or jump on Travelocity and book a vacation in Disneyworld—thus spurring consumer spending, which could help soften the recession we’re heading into or in already—than spend it prudently, which for most of us means paying down high-interest credit card debt. Or paying off the gas bill after a winter of very high fuel prices. I've already determined that I’m going to do just that with my incentive check.

Which doesn't mean I haven't been peeking at Bose's web site once or twice a day to look at the Wave music system (conveniently priced at a $100 less than my single-household stimulus check) I've been wanting since the tragic, accidental death of my Wave radio this summer. And, of course, if you take the money I was going to spend replacing that and the stimulus check, I could upgrade to the Acoustic Wave system… .

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