NRF Welcomes Economic Stimulus Package

Washington The National Retail Federation (NRF) welcomed an agreement on economic stimulus legislation reached Thursday between the Bush Administration and House leaders. The tentative deal would grant individuals a maximum rebate of $600 and married couples up to $1,200, plus $300 per child.

“The proposal put forth today is simple, targeted economic stimulus that will quickly put money into consumers’ pockets where it can boost economic growth by creating demand throughout all sectors of the economy,” NRF senior VP for government relations Steve Pfister said. “Given the financial stress that consumers will be under in the coming year, stimulus legislation is essential to the health of our nation’s economy and to the jobs that rely upon the strength of that economy.”

However, with consumers grappling with high debt, rising food and fuel costs, and negative savings, some retail experts said the proposed $150 billion stimulus package would not do enough to spur flagging consumer spending.

"Everybody recognizes that the stimulus is not going to do anything on a permanent basis. It's just a drop in the bucket," said Howard Davidowitz, chairman of New York-based retail consulting firm Davidowitz & Associates Inc.