Seniors Could Get Another $250.00 Stimulus Check

10/16/2009

posted by N. Sioris

Stumble It!

If the Obama administration gets its' way, 57 million seniors could be getting another $250.00 check from the government. If approved, the proposal calls for a one-time lump sum payment scheduled for sometime next year.

The justification for the $250.00 check for seniors is due to the fact that there will be no cost of living raise for Social Security recipients next year because there was no increase in inflation. This will be the first time since 1975 that Social Security benefits have not increased. This is a stark contrast from last year's increase, which was one of the highest on record at 5.8 percent.

$250.00 per recipient is equivalent to approximately 2 percent of the annual benefit for the average Social Security retiree. The proposed payments will also be paid to Supplemental Security Income recipients, Veterans, railroad retirees and government retirees.

The administration is not calling this proposed payment another "stimulus" package but instead they refer to it as an "economic recovery payment." According to Richard Fiesta, director of government and political affairs at the Alliance for Retired Americans in Washington, "The extra $250.00 is sort of in lieu of COLA, (cost of living adjustment) and we hope it will be enacted soon."

Economists say that a second round of $250.00 checks to folks that are primarily on fixed incomes will give a temporary boost to the economy, while other analysts worry that sluggish consumer spending could derail the economic recovery.

It remains to be seen how quickly, or if at all, the $250.00 proposal will be enacted. Partisan wrangling in Congress continues as usual, with even relatively uncontroversial bills such as extending jobless benefits for three more months, being held hostage by never ending bickering over ideology.

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