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More stimulus checks in the U.S. are expected. This comes as the lingering economic effects of the COVID-19 pandemic continue. Several stimulus options are on the table.
More stimulus checks in the U.S. may be on their way. Sources say that the government is working out which of the proposals will work and why. The COVID-19 pandemic has spread faster with looming effects. The economy teeters and unemployment is rising. Even those households with jobs are earning less than before.
While the PPP $1,200 checks were wonderful and saved a lot of people, apparently more needs to be done as the U.S. economy continues to tank. This is occurring as the shelter-in-place restrictions are still in forces. The economy is gradually reopening. More needs to be done in the meantime. More stimulus checks are one way-out that works in the U.S.
After the March $2 trillion package more stimulus is needed. A recent survey shows that at least 84% of respondents need another stimulus checks.
Will New U.S. Stimulus Checks Come?
While the stimulus met most of its goals, a few things were left out apparently. A recent Bankrate survey indicated that 31% of Americans said that the stimulus check covered only a month of expenses. This means that a segment fo the U.S. population is still vulnerable to the economic effects of the coronavirus pandemic.
As more than 40 million people have filed for unemployment at this period, experts believe that there is more damage to the economy occurring than is reported.
Greg McBride, chief financial analyst at Bankrate, told:
“There’s a lot of people that are still working, but they’re working for less money. They’re not making the money they were before.”
As consumer spending continues to tank, the economy will continue to contract. More incentives will be needed at some point. The only question is when.
There are several stimulus proposals on the table. One of them is another $1,200 check. One more is a $2,000 monthly check. Still yet a third is the $450 republican back-to-work bonuses. There is also the $600 weekly unemployment benefits.
Senator Kamala Harris D-California is in support of universal basic income that will help Americans at this time. Sources say that Sen. Kamala, Bernie Sanders I-Vermont with Ed Markey D-Massachusetts had introduced such a bill last month. The bill proposed stimulus measures of $2,000 a month to those making under $120,000 annually. Also, the bill proposed that $2,000 be given for every child. The limit will be for up to three children.
Universal Basic Income Has Its Implications
While universal basic income sounds like a perfect option, the inflationary effects in any economy can’t be ignored. The prices of just about everything will rise.
The United States Congress is expected to include another round of $1,200 in its stimulus bill. The bill valued at a massive $3 trillion is expected to be largely adopted by the Republican-controlled Senate.
Households still get $1,200 for single individuals or $2,400 for couples. Households with children get $1,200 per child for up to three children. This is up from $500 in the last stimulus. Households stand to gain up to $6,000. This bill also contains extensions to the $600 weekly unemployment benefits.
Senator Rob Portman R-Ohio has come up with a $450 weekly bonus. This is for those who return to work. It is meant to incentivize Americans to get back to work. This comes at a time when a recent survey found that 60%-70% of unemployed people are making more money than their regular job on Federal aid.
This means that the U.S. economy will still falter when such measures are removed after COVID-19. For now, stimulus measures help fill in the gap created.