The IRS has paid 156 million in third-round stimulus aid, with 25 million people this week accepting $ 1,400 checks, but some lawmakers are pushing for a fourth round of stimulus. This will effectively deliver recurring payments until the outbreak is over.
Until now, the federal government’s response to the economic crisis caused,400 under the American Rescue Plan, which Signed in March by President Joe Biden. Has delivered $ 3,200 to each eligible adult: $ 1,200 through the Coronavirus Relief and Economic Security Act of March 2020, $ 600 in December relief measures, and $ 1
Even with such financial assistance But millions of Americans are still in financial distress, with about 4 in 10 saying their income remains below pre-epidemic levels, according to a recent survey by financial services company TransUnion, unemployment. Still rising, especially in low-wage industries such as food service and hospitality, where demand continues to lag amid rising coronavirus rates.
For many people, in the short term, the last $ 1,400 round of checks might not take long, which is a problem.That still struggles with unemployment and a weak labor market.
Twenty-one senators, all of the Democrats, signed a March 30 letter to Biden in support of recurring stimulus payments, pointing out that $ 1,400 paid at the IRS. Redistribution will not affect people for a long time.
“Nearly six out of 10 people said the $ 1,400 payment included in the aid package would take less than three months,” the senator wrote in the letter.
While the letter did not specify that the massive pay the senators were seeking was a separate effort from Democrats’ lawmakers in January.For a $ 2,000 monthly review until the outbreak is over. But America’s Rescue Plan grants $ 1,400 for eligible adults and dependents.
Still alive to check salary
Some of the top economists have called for more direct American aid. More than 150 economists, including former Obama administration economist Jason Furman, signed a letter last year disputing the matter. “Direct stimulus payments that are recurring on a regular basis until the economy has recovered”
Although the economy has improved, includingMillions of people continue to suffer from lower incomes and have no access to government aid programs, said Greg Nasif, political director of Humanity Forward, a nonprofit that drives the payout. To stimulate the economy on a regular basis Only four out of 10 unemployed workers receive help from a study by economist Eliza Forsythe in March.
Many people never apply for unemployment benefits because they don’t think they are eligible, while others may give up due to long waits and other problems.
“You will see reports on economic growth. But many Americans spend their paychecks, and for most of them, government relief programs just can’t help, ”Nasif said.
How promising is the 4th stimulus?
Don’t hold your breath, according to Wall Street analysts, “I think it’s improbable at this time,” Raymond James analyst Ed Mills told CNBC. One reason is that the Biden administration is focused on development.It will transform the economy by rebuilding schools, the elderly, roads and airports, and investing in projects ranging from affordable housing to broadband.
The proposal, which the White House said would be funded by raising the corporate tax rate from 21% to 28%, might be “harder to pass” than a relief bill that provides a $ 1,400 check to most Americans because it does. Received objections from both Republicans and Some Democrats, Brian Gardner, Washington’s chief policy strategist, Stiefel, said last month.
Many households will receive additional help this summer when families with children under 18 will receive direct payments for six months through the revised child tax credit. From July to December, families with children under the age of 6 receive $ 300 per month, and those with children between the ages of 6 and 17 receive $ 250 per month per child.
“A lot of people will be surprised when they first check-in,” Nasif said.
Response with vaccination
Meanwhile, the economy is expected to recover this year due to rising COVID-19 vaccination rates and as states begin to reopen, JPMorgan Chase CEO Jamie Dimon predicted in an annual letter to shareholders. This week that the economy is booming..
“[W]With surplus savings, incentives, new spending, large deficits, and more. [quantitative easing by the Federal Reserve]A potential new infrastructure bill, a successful vaccine, and a euphoria towards the end of the outbreak, the U.S. economy is likely to grow. This growth could easily run into 2023 as total spending could expand well into 2023, ”Dimon wrote in a letter published Wednesday.
That could reduce the reason for governments offering more direct assistance, especially if the unemployment rate recovers and more workers are out of the field.
By the end of the year, the country’s unemployment rate could drop to 4.3%, according to Oxford Economics, however, the path to recovery “remains long” as there are still 4 million workers out of the Oxford Economics ranks, Oren Klachkin and Gregory Daco. Mentioned in the research note
“Looking ahead, the labor market is poised for an impressive action as widespread vaccination, more reopening and fiscal stimulus have led to increased employment,” they predicted.