The economic stimulus payment program is a gift to the American people and has been given with the aim of lifting the economy out of recession. This will undoubtedly help the economy recover although some economists are of the view that it may have a short term impact. Economic stimulus payment programs are aimed at providing jobs to people and thus boost the economy. In addition to this the other two components of the economic stimulus payment program are meant to increase demand for goods and services and to promote business activity. As a result, the economy receives a boost in terms of both employment generation and creation of new economic activity. The fiscal policy and the monetary policy have a major role to play in the economic stimulation payment program.
The economic stimulus payment program is a gift from the federal government to banks and other financial institutions. The money is provided to them so that they can provide credit to businesses and individuals in an effort to inject more money into the economy. The money is given in the form of fiscal stimulus payments. The term fiscal stimulus payment is used in this context. The payments are made on a monthly basis.
These days, it is hard for people to pay their monthly bills. Thus they rely on credit cards or cash from the bank. Thus a large number of people are facing problems in meeting their basic needs. To provide relief to the people, the economic stimulus payment program was introduced. As a matter of fact, this program is designed in such a way that every company, financial institutions and other bodies involved in the financial sector receive aid. Moreover, this program is a boon for the creditors as well.
If you are one of those individuals who have faced huge financial crisis then you should know about the benefits of receiving an economic stimulus payment. First of all, it increases your purchasing power as you get the opportunity to buy products at lower rates. Secondly, you are able to clear off your old account which had been stagnant due to the tough economic conditions. And, the thirdly, you can easily clear off your debts as the amount of your debt will come down as a result of negotiation with your creditor.
In fact, the economic stimulus payment is given directly to the creditors. This means that if you receive monetary assistance through a debt settlement deal then you have to repay only half of the amount instead of the whole amount. However, there are some conditions required by the creditors. Creditors need to ensure that the consumer will be able to repay the balance amount in the next six to eight months.
Economic stimulus payment is beneficial because it helps to avoid inflation. When the price of commodities goes up, the repayment amount has to increase proportionately. In fact, the government's fund distribution channels help consumers take advantage of this factor. On the one hand, it helps to avoid inflation but on the other hand it helps people settle their debts in a quick manner. Therefore, this payment helps . . . . . . to bring down the cost of living and to buy essential commodities at affordable rates.