There is a reason why stimulus checks are the best form of stimulus checks to help stimulate the economy. When stimulus checks go out to the public they go to all three groups of people, those that are wealthy, the middle class and those making under $40,000 a year.
When the wealthy get stimulus checks they save the money that they get which in turn doesn’t help to stimulate the economy. The middle class use the stimulus check to either pay off debt or to help pay other bills. Those making under $40,000 tend to either buy things and stimulating the economy or else using it to catch up on other bills like the middle class.
Compared to the tax cuts that people really don’t see because they are so small taken out over a longer period of time, having another stimulus check in 2011 would be very helpful to the entire country and many millions of Americans.
As the unemployment rate has risen over the years it now is nearing 10% unemployment. The government is hard at work to help as much as they can such as extending the tax cuts we do have for another 2 years, extending unemployment benefits to 155 weeks and home refinance stimulus package and the loan modification program.
You can see on this chart how the unemployment rate has grown over the last few years since April 2006 up until last year. The number of people on unemployment just keep growing without any end in sight.
No related posts.