MORE THAN two-thirds of Americans do not expect President Obama's newly-approved $787 billion economic stimulus package to improve their personal finances.
Results of a recent survey conducted by the First Command adviser firm indicated that 69 per cent of American families did "not feel confident that the government rescue plan (would) have a positive effect on their personal financial situation." 50 per cent expressed similar reservations regarding the plan's chances of successfully stabilising the US economy.
The above-mentioned results closely mimic responses from a previous company survey. 63 per cent of October respondents expressed doubts that the nascent economic bailout plan would positively affect their personal finances, while 50 per cent did not believe the rescue package would help stabilise the nation's economy.
"Taken together, the results from the October and February surveys suggest that most American families do not believe that the actions the US government is taking to stabilise the economy will be effective for either the national economy or their own personal finances," explained First Command CEO Scott Spiker. "In fact, the Financial Behaviors Index continues to reveal that consumers are taking control of their own finances by cutting household expenses and saving money."
Indeed, February respondents confirmed they were reducing leisure activities (63 percent), slowing clothing purchases (56 per cent) and attempting to slash their electric bills (48 per cent). Concurrently, 47 per cent of families increased their use of coupons, while 56 per cent shopped at discount stores and 19 per cent cut up their credit cards.
"Americans understand that it's time for a change in the way they spend money. We've been on a 15-to 20-year binge. It's going to be a long hangover," said Spiker.
According to Spiker, an increasing number of individuals are feeling the negative effects of America's economic turmoil. For example, 68 per cent of February respondents admitted to losing money in their retirement accounts. 51 per cent reported losing money in stocks, up from 47 per cent in January.
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