U.S. Treasury Secretary Henry Paulson said that the $600 rebate checks may create hundreds of thousands of new jobs. According to a Reuters report: "We know they're going to be helpful," Paulson said on CNN television. "These checks should be a big part of adding 500,000 to 600,000 additional jobs this year."

How can $600 create 600,000 jobs? With consumers pouring $168 billion back into the economy from these checks, the actual effect this will have on the economy could be double that amount. While no one can start a business on $600, the cumulative effect of 130 million Americans spending these checks will certainly add many to the employment rolls. I am not sure if you can pinpoint a number, but the rebate will definitely help.

If the government is going to get involved in trying to stimulate the economy, outside of tax cuts, this is the best way. Let individuals make the spending decisions that they think they need to make. This will prove to be much more effective than having the government funnel billions of dollars to some project. That method has been proven to be a black hole, as the government sends more and more money, while the bureaucrats claim it's not enough and ask for -- and get -- more. And the problem never gets fixed.

Let's see how accurate Paulson's projection will turn out to be.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/28/08.

After recommending yesterday that our leaders should stimulate the economy by investing in infrastructure rather than mad money stimulus, and after discussing this with some business associates, I have a few more thoughts I'd like to share.

We have been hearing that 70% of our economy has been supported by the American consumer. Congress and the President have agreed on -- or colluded, depending on who you speak with -- a bi-partisan economic stimulus package. When, and if, the check arrives in the mail, there might be short-term glee among the populous. But if it is used just to stimulate more consumption, then it will only serve to postpone the pain by some time -- perhaps a month or two.

If I get anything back, I will be using it to reduce debt or invest in equity and nothing else. I hope my fellow citizens are able to understand that reducing debt or investing in equity has some value, while consuming, that is, rushing out to buy a flat-screen television or a new PlayStation, is a complete waste of a one-time opportunity.