General Discussion

Social Security payments do not go out to 72 million SS retirement recipients, and another 5-million receiving SSI disability. I cited the willingness of banks and the financial industry to work for some brief period, suspending payment deadlines etc., with people affected by natural disasters.

After she stopped laughing, she pointed out that the banking and financial industries are looking forward to the billions of dollars they'll rake in with dishonored transaction fees, as Social Security recipients can't pay their bills. The Biden administration capped bank fees for "bounced checks" at $5 each. Bankers sued to overturn that. They used to charge as much as $40 per. But now there is legislation moving thru Congress to remove all caps on bank fees. It is enthusiastically embraced by Republicans.

A simple calculation of 72-million SS recipients x the average SS payment of $1,909 (as of Jan. 2025), is a monthly hit to the economy of $137.4-billion, if those checks don't go out.

When it occurs, it's going to be ugly and costly for everyone....banks included.