Wednesday, April 29, 2009
The Associated Press reports that millions of senior citizens will soon be getting their cut of the recent economic stimulus money. For some, it can't come soon enough.
More than 50 million retirees can expect to receive $250 payments from the government in the next few weeks as their share of the economic stimulus package enacted in February.If Congress really wanted to help, they should pass a law to ban "the paradox of thrift". Then again, one could argue that the Federal Reserve is already taking care of that with their freakishly low interest rates that provide little or no return on savings.
The payments are part of the $787 billion package of spending and tax cuts enacted in February to help boost the economy. They will go to people who receive Social Security, Supplemental Security Income, railroad retirement or veteran's disability benefits.
The goal of the stimulus package is to get people to spend money at a time when most are reducing spending and saving more. It makes sense to be frugal when the economy is in such bad shape, but it hurts the economy when everyone does it.