America is still hurting from the recession. Unemployment is high and the economy is not doing well. The country is just not growing fast enough to handle the large numbers of unemployed people.
People who don’t have jobs, tend not to have much money. People who don’t have much money, don’t spend much money. The economy slows down when too many people stop spending and indicators such as unemployment rates start to climb.
Find out if there will be a stimulus check in 2012.
It’s not just the unemployed who aren’t spending, many employed people have cut back on their expenses for fear that they might lose their jobs or face wage cuts.
Another problem is the real estate crash. Owning a house that has fallen in value or is under water will often make a person more careful with their spending.
Stimulus check in 2011
One solution to get people spending is another stimulus check in 2011. In 2008, the government gave out money in order to help the economy. Checks of up to $600 per person were mailed out. It’s hard to tell if that stimulus was successful or not. The economy hasn’t recovered, however the economy might be worse, had it not been for that $600 stimulus check.
The government has not announced any plans to give out stimulus check in 2011, but if the economy does not improve in the next few months then it has to be a consideration.
Recent stimulus checks
2009 – $250 stimulus check was mailed out for recipients of Social Security, SSI and others.
This stimulus check was intended to make up for the fact that the Social Security raise for 2009 was zero, because of low inflation.
2008 – $600 per adult, $300 per child.
These 2008 stimulus checks were mailed out to everyone, unless your income was too high to qualify. The idea behind these checks was to help stimulate the economy.
Check out the 2012 Social Security COLA increase.