Worldwide economic recession is happening and it is hurting a lot of businesses because of cost-cutting. In the United States of America, there have been talks about giving out stimulus checks to help the economy. Many people are wondering if there be a stimulus check in 2012?
Stimulus check definition
According to experts a stimulus check is defined as a check that the U.S government gives to its taxpayers so that the consumers will spend the money in order to help generate sales and income in businesses like retailers, manufacturers, real estate and the like. The amount on the check depends on the income tax return filed by taxpayers. Accordingly, those who are joint taxpayers will receive twice as much as other taxpayers will receive in their stimulus check.
Why is the government doing this?
America had been hit hard by recession in 2008 and a lot people lost their jobs and businesses closed down because of poor income. The economy was on a downward slope so a lot of people tended to avoid spending and only buy what they needed and not what they want. Certain business sectors and even real estate crashed And the solution is to give out stimulus checks to the taxpayers to stimulate the economy.
Why does the government see this as one of the solutions?
By giving money away money, they will have more opportunity to spend and in return, it will stimulate economic growth. This is one of the attempts to help fix recession and the increasing unemployment rate. But a point of concern is raised if the government spends too much and increase the debt load which will also bring a negative effect on the economy.
Stimulus check look-back
In 2008, stimulus checks have been given in order to help the economy in the midst of the crisis. About 120 million households were given up to $600 per person. Then in 2009, about $250 stimulus checks were sent out to select groups. During that year, the stimulus check was given to each person receiving Social Security and SSI because of the very low inflation that year.
In 2010 and 2011, there was a proposed stimulus check of about $250 million that was intended to be given in the first quarter or 2010, but it never happened.
Who can get the stimulus check?
According to reports, in 2010 and 2011, there are selected groups that are intended to be given a stimulus check. This includes people who receive Social Security or SSI.