Small change can mean big change in the right hands

President Obama’s $825 billion stimulus package includes $300 billion in tax cuts, which would come to the American spending public in the form of rebates. But history proves that refunds, whether dispersed in a small steady amounts or in one lump sum, do little to jumpstart a spending spree. For an assessment of what a tax rebate should look like under an administration that runs on the motto of “change,” we are joined by Dan Ariely, who is the James B. Duke Professor of Behavioral Economics at Duke University and author of Predictably Irrational: The Hidden Forces That Shape Our Decisions.

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