Multiple Choice: Economics
The New York Times has an interesting multiple choice question regarding how to spend money to help stimulate the economy,
If you wanted to help the economy and you had $14 billion to bestow on any group of people, which group would you choose:
a) Teenagers and young adults, who have an 18 percent unemployment rate.
b) All the middle-age long-term jobless who, for various reasons, are not eligible for unemployment benefits.
c) The taxpayers of the future (by using the $14 billion to pay down the deficit).
d) The group that has survived the Great Recession probably better than any other, with stronger income growth, fewer job cuts and little loss of health insurance.
The New York Times notes that the Obama Administration has decided to go with option d. And this spending will follow a 5.8% cost of living increase from this past year. Now granted, Social Security recipients are scheduled to get no cost of living increase next year, because they received such a large one this year, but still is this the best way to spend $14 billion? Give it to people who are not productive and have already gotten a nice raise? Especially when we have options a and b out there?
I have to agree with Rosanne Altshuler, this is nothing more than “pure pandering to the elderly”. Change you can believe in.