Free money from the government, designed to stimulate the economy, is slowly appearing in the wallets of UW students.

The Bush administration has been sending out tax rebates as part of the government’s economic stimulus package. The total amount of money being sent out to Americans is $168 billion.

In a press release April 25, the president voiced hopes that the rebates would help stimulate the economy.

“This money is going to help Americans offset the high prices we’re seeing at the gas pump and at the grocery store, and it will also give our economy a boost to help us pull out of this economic slowdown. […] I’m pleased that the Treasury Department has worked quickly to get the money into the hands of the American people,” Bush said.

Many UW students will soon be getting checks with extra money from the government. The big question now is how students are going to spend all this money and how businesses are going to react to it.

“I’ll do what I’m supposed to do with it: I’m going to go be a consumer and buy an iPhone or something,” said sophomore Isaac Statnekov, who expects to receive about $300 in the coming weeks.

This is exactly what Neil Bruce, a professor of economics at the UW, believes most students will do with the money.

“I’m guessing they will probably go out and spend it,” he said.

Many UW students agree.

“I’m using the money to buy protein shakes and Rosetta Stone,” junior Kirk Strandjord said.

However, Bruce cautioned students not to spend all their money on consumer goods.

“Students should spend it according to their highest priorities,” Bruce said. “If the student is faced with a decision of dropping out or paying tuition, they should use the money for their tuition.”

With students getting extra money and some spending it out on the Ave, there is some concern that businesses will raise prices in response.

However, Neil Bruce said this doesn’t seem to be the case.

“It would not be enough of a change for the Ave economy to cause an increase in prices, but prices might still go up due to other factors, like the increase in food prices going on now,” he said.

He also cautioned those receiving tax rebates to remember where they’re coming from.

“Everybody should remember that the rebates are actually borrowed money,” Bruce said. “The national debt has increased because of it, and it actually works against the future, so people should spend it wisely.”