“We need at least one more check.” The case for a fourth stimulus payment
Signs calling for more relief, a second paycheck protection program, and more as part of a Goldman Sachs campaign to help small businesses near the U.S. Capitol on January 5, 2021.
BRENDAN SMIALOWSKI | AFP | Getty Images
Stimulus checks earned Americans around $ 850 billion in financial support last year.
Now the Economic Security Project, a proponent of guaranteed income, is calling for more direct payments to fuel the recovery.
In fact, this suggests that the new $ 1,400 stimulus reviews are boosting the economy.
To date, the government has made around 159 million payments totaling more than $ 376 billion in this round.
These reviews helped retail sales jump 9.8% in March, beating expectations for a 6.1% increase.
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Other data suggests Americans are using the money to improve their balance sheets.
A new survey from Bankrate.com found that most people plan on using the $ 1,400 checks for monthly expenses, everyday affairs, debt payments, and savings.
Many respondents said that if it took that long, the money would take less than three months.
“We still need at least one check,” said Adam Ruben, campaign manager at the Economic Security Project.
Over the past year, three rounds of stimulus checks – payments of up to $ 1,200, $ 600, and $ 1,400 per person – helped increase the incomes of the lowest-income households by 20%, according to the new report from the Economic Security Project .
In addition, the $ 1,400 checks will help lift 11 million people out of poverty this year, according to the study. In comparison, the new, expanded unemployment benefit will help save less than 4 million people from poverty.
“Last year’s results show that stimulus checks are the fastest and most effective investments in helping Americans emerge from this crisis and lift more people out of poverty than any other policy,” the report said.
According to the study, additional direct payments would also help minorities and households that are financially more affected by the pandemic.
Although the overall unemployment rate is now 6%, the black rate is highest at 9.6%.
In addition, the research found that two-thirds of black and Latin American households struggled to cover household expenses for the week of March 17-29, while fewer than half of white households.
DC has largely started to focus on restoration and an infrastructure bill.
Washington Political Analyst with Raymond James
To this end, the Economic Security Project advocates additional direct payments for those who need help most. The group also calls for improvements to the system so that these payments are automatically sent to authorized persons.
The idea of additional direct controls was recently supported by 21 senators who sent a letter to President Joe Biden.
The gap between approving the first $ 1,200 check and approving the second $ 600 check shows what can happen if people’s financial needs are not met, according to Ruben.
During this time, up to 8 million people fell into poverty.
“Let’s not do that again. Let’s do these checks automatically,” said Ruben. “Let’s tie them to the economic terms so people don’t end up at the stalemate in Washington.”
So far, experts have said the prospect of a fourth stimulus check is preliminary at best.
“DC has largely begun to focus on recovery and an infrastructure bill,” Raymond James Washington political analyst Ed Mills said recently.
However, it is planned that additional cash payments will be made to parents from July with the introduction of the extended tax credit for children
The Economic Security Project also calls for the permanent expansion of this credit as well as the tax credit for earned income.