Fri Feb 22, 4:37 PM ET
A New York shopping mall is doing its part to stimulate the struggling U.S. economy by giving away $20,000 in cash to unsuspecting passers-by, hoping that handing out $50 bills will boost consumer confidence.
People dressed as Uncle Sam and the Statue of Liberty started handing out $1 bills around the borough of Queens earlier in the week, then began shelling out $50 bills at the Atlas Park shopping center on Friday.
Recipients are asked to spend or invest the money and told that if people have confidence in the economy it will become a self-fulfilling prophecy.
The handouts will continue for two months until reaching $20,000, equivalent to $0.05 per square foot of retail space.
The mall owners say the private-sector effort will "supplement" the $168 billion stimulus package signed into law by U.S. President George W. Bush on February 13.
Atlas Park owner Damon Hemmerdinger noted that tax rebates in the stimulus plan won't reach consumers for months.
"It (the stimulus package) is important and I'm not at all critical of it, but I'm watching layoffs and bankruptcies and pain and suffering," Hemmerdinger said. "That's not enough. We shouldn't wait for anybody else to solve our problems."
Hemmerdinger estimated that if every shopping center in the country gave away cash using the same formula it would pump $340 million back into the sagging economy.
One economist, while acknowledging the giveaway may not have much impact on the $13 trillion U.S. economy, but said the gesture could boost consumer confidence.
"It moves us in the right direction," said Frank Tinari, professor emeritus at Seton Hall University. "It's taking money out of savings or profits and pumping it back into the economy."
(Reporting by Daniel Trotta; editing by Stuart Grudgings)
Subscribe to:
Post Comments (Atom)
7 comments:
i have heard of this. our economy is really hurting because peoples income is going down and inflation is going up. people are not shopping as much. i think this is interesting because it relates to our classes theory that people use money in different ways depending on how they get it. since they are giving it away in a mall people may be less likely to take it home and spend it on bills.
This is brilliant! It reminds me of the distribution mechanism for Ithaca HOURS, too, except of course that here it is "real" money. And it calls to mind Marcel Mauss's The Gift, too. Very interesting post!
i have to share my sentiments with claire
I need to be there. Free money is always good. This is a very interesting way to lure in customers. Many will end up spending more than they are given and profits may exceed the money given out. That's smart business in a seemingly dumb way.
I agree with Brandon. Handing out the money is a smart way to increase sales as most people are probably likely to spend more then what they are given once they start shopping. However, there will also be those that decide to just keep the money and perhaps even save it, which then wouldn't help our recession at all. But then again since the money is given out in smaller increments, maybe thats incentive enough to just spend it.
i feel like that is a good and bad thing at the same time. Its good because it is giving hope to people as unrealistic as it may be. Its bad because you don't know what people will do with the money, they may spend it on the spot which I must admit I probably would if I was in that situation or they may really just invest it.
Post a Comment