text-only page produced automatically by LIFT Text Transcoder Skip all navigation and go to page contentSkip top navigation and go to directorate navigationSkip top navigation and go to page navigation
National Science Foundation
News
design element
News
News From the Field
For the News Media
Special Reports
Research Overviews
NSF-Wide Investments
Speeches & Lectures
NSF Current Newsletter
Multimedia Gallery
Search Multimedia
Image
Video
Audio
More
Multimedia in the News
NSF Executive Staff
News Archive
 

Email this pagePrint this page
"Cash Pour" -- The Discovery Files


The Discovery Files
Audio Play Audio
The Discovery Files podcast is available through iTunes or you can add the RSS feed to your podcast receiver. You can also access the series via AudioNow® by calling 405-875-0058 on any telephone.

Researchers at Princeton University and NYU find that for economic stimuli to be more productive, payments should extend beyond the poorest households.

Credit: NSF/Karson Productions

Audio Transcript:

Stimulating a stimulus.

I'm Bob Karson with the discovery files--new advances in science and engineering from the National Science Foundation.

Government stimulus programs like those in 2001, 8 and 9 are designed to get cash into the hands of the poorest Americans. The reasoning is they'll spend it, and quickly get the money into the economy. But a study from Princeton University and NYU shows that approach may not get us the biggest bang for our stimulus bucks. It suggests that to maximize the amount spent, those programs should be extended into segments of the middle class.

The research team analyzed information on the finances of American households from 1989 through 2010. About 40 percent of U.S. households live paycheck-to-paycheck. Each month most or all of their liquid money gets spent. Two-thirds, of that group, are described as "wealthy hand to mouth"--cash poor, even though their income or net worth would not classify them as "poor." Its all about cash on hand if a large amount of their money is tied up in retirement accounts or a house, this group reacts to swings in income more like the poor than the wealthy.

One caveat: As the size of the payment increases, the wealthy hand-to-mouth are more likely to begin to save.

Social science that could help policy-makers, determine the best use of stimulus funds--a little 'stimulating' conversation.

"The discovery files" covers projects funded by the government's National Science Foundation. Federally sponsored research--brought to you, by you! Learn more at nsf.gov or on our podcast.

 
General Restrictions:
Images and other media in the National Science Foundation Multimedia Gallery are available for use in print and electronic material by NSF employees, members of the media, university staff, teachers and the general public. All media in the gallery are intended for personal, educational and nonprofit/non-commercial use only.

Images credited to the National Science Foundation, a federal agency, are in the public domain. The images were created by employees of the United States Government as part of their official duties or prepared by contractors as "works for hire" for NSF. You may freely use NSF-credited images and, at your discretion, credit NSF with a "Courtesy: National Science Foundation" notation. Additional information about general usage can be found in Conditions.

MP3 icon
NSF podcasts are in mp3 format for easy download to desktop and laptops, as well as mobile devices capable of playing them.

 



Email this pagePrint this page
Back to Top of page