Tailor-Made Stimulus Packages
The global pandemic has seen many businesses permanently close, and over 40 million Americans have filed for unemployment relief benefits. Most businesses and companies in travel, hospitality, retail, and food service are affected the most by the looming economic recession. If the federal government gives the green light for another stimulus package, it will be mostly tailored for employees and employers in those industries most affected.
The Senate, the White House, and the Treasury are searching for new ways to pump more federal money back into the economy. Democrats have proposed another round of $1,200 stimulus checks with their $3 trillion aid packages that passed the House in May — a move many Republicans call a “liberal wish list.”
However, since the Democrat-led package passed, more Republican leaders have since become accustomed to the idea, with the White House and Mnuchin looking to quickly offer more federal payouts in the upcoming months.
To some extent, the stimulus checks have made an impact on the US economy. In March, when the government first rolled out economic relief efforts to assist Americans with federal money, some leaders felt that it wouldn’t make any difference to the growing economic recession.
How Did the Initial Stimulus Relief Packages Work?
Initially, the stimulus checks were meant for citizens who make less than $75,000 annually, with an additional $500 for each child under 17 years. A few weeks later, the federal government realized that the cut-off amount should be raised to help secure financial stability for even more citizens, and raised the cut off to people making $99,000 or more per year.
Slow and Steady Recovery
Since March, almost 5 million new jobs have already been added to the labor market, with the Department of Labor Statistics reporting that around 4.8 million citizens found employment in the current economic market in June. Although growth is on the slow end of the spectrum, easing of lockdown measures has seen more people return to work, with new jobs and positions becoming available.
Currently, the stimulus aid packages are set to expire on July 31. However, uncertainty over the recovering economy has seen quicker and more reluctant efforts by the government to keep complete economic turmoil at bay.
Better Stimulus Administration Is Needed
Adding more federal assistance to the economy would mean more job openings and overall better relief support for struggling citizens. Still, many Republican leaders feel that the stimulus packages are a way to instill socialistic ideals in US democracy.
In late June, a report estimated that almost $1.4 billion in stimulus checks were sent off to deceased individuals, leaving many unsure about what to do with the additional money. The government is seeking ways to reinvest and return the “lost” federal cash to the economy. Improper payments and loss of federal money reflect the seemingly wasteful spending the government has endured since Congress passed the $2.6 trillion bailout package in March.
If the government is looking to open discussion about another round of stimulus checks, they will need to prioritize spending, ensuring a more tailored package for those greatly affected by the current economic crisis.