Now that a cost-of-living adjustment for Social Security recipients has been officially ruled out, the one-time $250 checks that President Obama is proposing for retirees and others would help consumers but wouldn't come close to boosting spending the way a permanent increase would. We estimate that the 5.8% COLA for 2009, the largest in more than 25 years, added nearly $3.8 billion to personal income every month this year. By contrast, this proposed payment, similar to the one-time additions to Social Security payments in May, would add $13 billion to transfer payments. Although this would be a small support for consumers, it would pale in comparison with the support a permanent COLA provides....
