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Archive for the ‘tax credit’ Category

The American Recovery and Reinvestment Act, signed into law on February 17, 2009, provides for a one-time economic recovery payment of $250 to be disbursed this May to people who receive Social Security, Supplemental Security Income, or Railroad Retirement and Veterans benefits. Anyone eligible for one of these benefits at any time during the months of November 2008, December 2008 or January 2009, is eligible for the one-time payment.

Will this have a noticeable impact on consumer spending? I expect people will spend at least half of these payments within a couple of months of receiving the money. Before calculating the direct macroeconomic effect of these payments, why do I think people will spend so much? (more…)

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