As Americans remain out of work and uncertain of their financial future, they have been demanding that the federal government continue to stimulate the economy.
This is because the velocity of cash is an integral part of the way our fiscal system works. We need money trickling from that bartender, to their hair stylist, to their manicurist, to the grocery store, and so on. Think of it like the blood that pumps in our veins, extrapolated out over a system of corporations and retailers, acting like tens of thousands of hearts, all pumping this arterial moolah around.
That’s why direct payments to Americans are once again making their way into another coronavirus relief bill.
House Democrats want to send Americans a second round of stimulus checks worth up to $6,000 per family as part of the $3 trillion coronavirus relief package they rolled out Tuesday — the largest in history.
Like the first round of payments approved by Congress in March, new proposal calls for giving $1,200 to those earning up to $75,000 a year and $2,400 to couples without dependents making double that before phasing out. But it would be far more generous to many families with children, providing $1,200 per dependent up to a maximum of three dependents. The earlier stimulus package, which is still in the process of being distributed, gave $500 for each qualifying child under age 17.
Americans may not see these new, more generous payments, however. Senate Republican leaders have already said the new bill is dead on arrival, arguing that another round of emergency funding is not yet needed as states begin to reopen.
And that’s not all…
The Democratic bill would also extend the historic enhancement of unemployment benefits included in the March legislation. It calls for continuing the weekly $600 federal payment through January, instead of through July.
We can only hope that this bill won’t be mired in the political tug of war that so many others have been during this virus crisis.