Where did the money go?

The drop in gasoline prices since summer has amounted to about $2,000 per household in spendable income. That's why a "stimulus" check isn't going to dent the recession. Now, we didn't get that much--we have two cars but don't drive a lot, but it did halve what we spent on gasoline. I think our share went to our California relatives (bunches of them--probably more than any other state). According to USAToday here's were it went:

48% for groceries

42% to savings

30% to pay down credit card debt

10% for entertainment

9% for home improvements

I think that shows the American people can make good financial choices when the government gets out of the way. Even though money that goes into savings isn't technically out there circulating by buying "stuff," it is used by banks to offer credit to businesses that do employ people. If you remember, since Congress doesn't, this was the idea behind the huge September scare--TARP. The money was to be used for banks to get the economy going. Instead, it has morphed into PARP POOP PORK. This is why we're getting the return of the Hoover-FDR economic boondoggle of federal fiddling (1929-1943), only this time it will be the Bush-Obama Boondoggle. Let's hope it doesn't last over a decade this time.