2010 Stimulus Check – Will There Be Another Stimulus Check Coming Next Year?
As I previously mentioned, most of the growth present in the US economy is coming from the money injected into our capitalist system by the Government. The housing market hasn’t seemed to pick up that much and the real unemployment rate is closer to 17% than 10% (unemployment rate doesn’t count people that are on welfare or those who gave up and quit looking for a job).
This is why so many people are asking if we will get another stimulus check in 2010?
So here’s what we know so far:
There will be a $250 stimulus check for Social Security (SS)
This new stimulus check is a one shot deal and will happen during the first quarter of 2010. Besides this measure, no raises are forecast for the Social Security amount allowed.
The stimulus check will be received the very same way you receive Social Security.
This measure will cost the US Government about $13 billion!
Unfortunately, no other stimulus measures (cash for clunkers for example) have been announced yet.
Why the government is doing this?
I would say that the main reason why the government is sending another stimulus check is to give a (very small) break to many US families. By doing it through a single check, they avoid costly measures that would recur in time. However, this is far from being enough.
According to some economists, a total of $125 billion would be required to be distributed among the US population to make sure that we support the economy during enough time to avoid slipping back into a recession again.
These additional stimulus checks would act as a spark plug to fire the engine of our economy. It seems that companies are still not able to hire more people and they are generating profits by cutting their expenses. This is obviously not the right way to assure economic prosperity!
What to do with your stimulus check?
While the US economy is in deep need of people spending money especially in its stores (this is why we have Black Friday, isn’t?), I think the best use of this stimulus check would be to pay off debt or put it aside in case you need it.
Our economy doesn’t need consumers re-mortgaging their properties to overspend on what they can’t afford. It will hurt for a while, but we are better off with a population that is able to save again and doesn’t crumble by the weight of their debts.
Do you have any other questions about the 2010 stimulus check?
image source: josÃ© manuel