This might be dumb question, but...

[snuffy]

If the economy is hurting and more Americans are struggling to pay for gas, food, rent and the list could go on, why doesn't the government ask the oil companies to cut prices for 90 day to stimulate the economy? If they are pulling in record profits something tells me they might be able to afford it. If they dropped the price for May, June and July, right after the rebate goes out people could go on vacation, or just to the store to spend the money? But it seems to me, and I am not a expert, that if prices stay high that those checks are going to the bank or to pay for gas and food?

Be side Big Oil screaming the heads off, is there a reason this would not work?

[Lewis the Pike]

if people stop using oil; they will lower the prices;

the honus is on the consumer to lower prices, not the supplier

[PokesFanatic]

It's a catch-22. Our entire economy has been built around cheap energy for around 30 years now and energy isn't so cheap any more. People want convenience and comfort and companies want profits. Now that risen energy costs have influenced consumer inflation in every sector, the pressure is on to find the point of diminishing returns.

We have an inflated housing market, lending woes and pretty hefty consumer inflation (last I heard 60% rise in cost of living with less than 10% increase in earnings over 10 years). I say we're facing an inevitable correction, though it may be a long and drawn-out one rather than an abrupt, 'deep recession' type of situation. It's honestly hard to tell. The key to getting through it is for people and companies alike to adapt to change quickly.

Getting to the point of the thread, I don't think it's right for the government to ask a particular industry to finance an economic stimulus. Lewis is right that demand must be curbed for any real effect to take hold. Insignificant little band-aid patches like the tax rebate are only going to drive the national debt up. Consumers and companies alike need to get their heads on straight and start to emphasize efficiency at some point.