THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ Celebrating 25 Years of Advocacy for Older Americans ~

January 28, 2008

NEWS RELEASE

The Senate Proposes Stimulus for Seniors

The National Committee Applauds Senate Finance Committee Proposal to Include Social Security Beneficiaries in Stimulus Package

"We congratulate the Senate Finance Committee for understanding the need to craft a stimulus plan which considers all needy Americans, young and old alike. The rush to pass a stimulus package is not reason enough to ignore millions of American seniors who can help make this economic recovery a success.  Seniors need the money and will spend the money.  If timely, targeted and temporary really is the goal of this stimulus package then seniors should not be left out." Barbara B. Kennelly, President/CEO

Older Americans living on a fixed income feel the pressure of high prices and the slowing economy as acutely as anyone, yet the House-negotiated stimulus package ignores the needs of almost half of our nation's 65-plus population. Many of these seniors are in the direst need and most likely to spend any additional income on necessary resources such as medicine, utilities, food and clothing.

According to the Bureau of Economic Analysis, Americans over 65 are responsible for 14% of all consumer spending. Seniors are also among the demographic groups most likely to spend any stimulus benefit they receive.  The most recent Consumer Expenditure Survey by the Bureau of Economic Analysis says the average household headed by someone over age 65 spent 92% of their annual income, which is higher than any other demographic group with the exception of those under age 25. Seniors spend what they earn, especially as prices continue to rise, because they live on a fixed income.  

The National Committee's millions of members and supporters are calling, writing, and emailing Washington this week to ensure America 's fastest growing demographic is not ignored in this economic recovery effort.