Did $14 Billion Go to the Wrong Group?

Posted by Sara M. Varese

Many question whether the Obama Administration’s choice to distribute $14 Billion dollars to Social Security Recipients was the right group to contribute to during these tough economic times when other groups may be in more need.

No single group has been left out of the recession – recipients of social security benefits, teenagers, unemployed young adults or middle-aged, or the future taxpayers. Everyone is struggling, however, there has been debate over which group deserves the $14 Billion in government aid.

In addition to the bill, a no-cost-of-living increase in their Social Security Benefits has been approved, mainly to make up for the 5.8% increase this year.

A lot of this proposal has to do with politics – those over 65 vote in large packs and opposition is often difficult.

Others argue that there is a bigger problem than the social security checks, it has more to do with the increasing deficit – a deficit that some say can be reduced by “entitlement reform” (decreasing social security benefits). However, if the government cannot say no to the social security entitlement, which may decrease in value each year due to inflation, then there may be a problem in government spending.

In 1970, a bill was passed that promised Social Security entitlement could never decline and will go up with prices or stay constant if prices went down. On the flip side, there will be tax cuts both this year and the next for workers.

During these hard economic times, there is ongoing debate for the correct distribution of funds – who should they go to?

This financial news briefing was provided to you by Pay1Day.com, a company dedicated to providing immediate cash assistance to consumers.

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