NOTE: this article was written before the approval of the American Rescue Plan
By: Malia Bicoy
As our world falls deeper and deeper into the pandemic, it is only natural for the lives of average day American citizens to change. Students are learning from their kitchen tables, business meetings are simultaneously happening round the clock without anyone stepping foot outside the door, and small scale businesses are closing down for better days. The world has come to a halt. But the economy hasn’t. Stimulus checks have become a staple in past recessions and other nationwide issues by maintaining the stimulation of the economy, while also keeping American citizens afloat.
The current coronavirus pandemic is no exception to this. Currently the country is going through what is most reasonably deemed an artificial recession, as large portions of the economy are shut down. There are no major internal issues with the economy that would currently lead to a recession, but simply external forces making it plummet. This is where stimulus packages come in.
So far during the course of the virus, there has been one stimulus package. Authorized by the Coronavirus Aid, Relief, and Economic Security Act, the Internal Revenue Service sent out 153 million stimulus checks each worth $1,200 or $2,400 if filing jointly with another person. This also took into consideration children, by adding $500 for each eligible child. However, there were exceptions to who could collect this check. Like any other stimulus check in the past, if a singular tax payer made $99,000 per year or anything more, or a married couple filed under their taxes together had made $198,000 or more, they were not acceptable candidates in receiving a stimulus check.
This first stimulus check received much controversy, and with 140,000 jobs being cut just in the month of December, specifically women’s jobs, it was decidedly not enough for only one stimulus package to be sent out. On December 27, 2020, the federal government authorized a relief package for many Americans, which included a second stimulus check. The cut off of total income per year was brought down $10,000, as to lower the amount of citizens acceptable for the check. This package will give half the amount of the first round of stimulus checks, and will be on their way to citizens by early January.
According to Time, it took only a few months for families across the nation to run out of the money given in the stimulus packages. The most common resolution by many is to send stimulus checks on a regular basis. This way, taxpayers will have some sum of money to fall back on, which is especially vital due to the influx of those filing for unemployment. Being one of the richest nations in the world with one of the lowest tax rates, it is more than probable for this method to thrive.
If stimulus checks were to be sent out at a regular rate along with the usual unemployment insurance, it would decrease poverty in America by three and a half times during this Pandemic. It not only would help American citizens through tough times, but it would also help stabilize the economy long term. More money in the hands of Americans, means more money being moved around in the American economy. Food for thought.