Expectations for another large round of federal support for Americans hurt byPandemic is back, President-elect Joe Biden “Give the COVID relief package together.” Many dismissed workers, small businesses, etc. are expected to face more financial difficulties without further government support, as many pandemic aid programs have run out of funds or are due to expire next month. Facing
Many analysts expect lawmakers to eventually set aside their faction differences and pass another stimulus bill, but the scale and timing of the measures remain uncertain. Senate leader Mitch McConnell said at a press conference on November 4 that he wanted to pass the aid agreement by the end of the year and said he would support another stimulus package.
Still, the packages passed during the so-called “lame duck” session were sought by Democrats, according to Wall Street analysts, before newly elected members of the Senate and House of Representatives won seats with Mr. Biden in January. 2 trillion dollars.
“McConnell is likely to re-propose the plan he pushed forward in October. McConnell’s plan was $ 500 billion and included an additional Paycheck Conservation Program Fund,” said Brian, Stiffel’s Washington Policy Strategist. Gardner said in a research note.
Republicans say Pfizer will get a coronavirus vaccine earlier this monthGardner added in the prevention of COVID-19 infection.And on Monday, Moderna According to preliminary data from the company’s ongoing research, the COVID-19 vaccine is 94.5% effective.
Vaccine availability will significantly boost employment, income and other indicators of economic growth, reducing the need for large-scale stimulus bills, some Republicans argue.
Wal-Mart: Stimulus is “essential”
According to experts, the spread of effective vaccines will rejuvenate some of the economies that have been hit hard by the pandemic, such as the aviation and hospitality industries, and reduce some of the need for government support. .. However, such deployments can take months, with millions of consumers and businesses hanging without the help of additional government funding.
Already, there are signs that the surge in COVID-19 incidents has lost confidence in the economic recovery, and consumers may be cutting spending, coupled with a lack of new stimulus spending from Washington, DC. US retail sales have been pulled into a “near stop.” “In October, according to James Watson, senior US economist at Oxford Economics, he quotes data from the US Department of Commerce released on Tuesday.
Wal-Mart CEO Doug McMillon said on Tuesday that it was “essential” for lawmakers to get together and pass another stimulus package. “The increase in cases will put more pressure on SMEs that are heavily affected by the pandemic,” McMillon said.With an analyst.
A $ 1,200 check?
House Democrats and the Trump administration found themselves, The range from the size of the package to its priority. Democrats are calling for a $ 600 recovery with funding to support states and local governments facing a huge pandemic budget shortage and weekly supplementary unemployment assistance. Republicans argue that the latter discourages people from returning to work.
However, Republicans and Democrats have agreed on several issues, such as supplementing paycheck protection programs and stimulating funding for low- and middle-income households. The first round of stimulus checks offered a single taxpayer up to $ 1,200, a couple up to $ 2,400, and most children $ 500.
According to analysts, families are likely to see another round of stimulus checks, but don’t expect to receive them until early 2021.
“Current baseline assumptions are about $ 750 billion in financial packages. [the first quarter of 2021] It’s rational. ” Deutsche Bank analysts said in a research note on Friday.
The outlook for additional stimulus spending after President Biden took office on January 20 depends on whether Republicans retain control of the Senate. If the Democrats fail to vote in the two-seat Georgia Senate final on January 5, Republicans will retain control and are less likely to pass by President Biden to sign key stimulus measures.
$ 500 billion? $ 1.8 trillion? $ 2.2 trillion?
For months, Republicans and Democrats have been disagreeing about the size of the next stimulus. McConnell highlighted a streamlined proposal from the Republican Party. It has a price tag of over $ 500 billion. On the other hand, the House of Representatives managed by the Democratic PartyIn October, the White House countered with a $ 1.8 trillion proposal.
House Speaker Nancy Pelosi rejected the $ 1.8 billion offer, arguing that provisions such as testing and tracking and funding for childcare were not sufficient. Treasury Secretary Steven Mnuchin said the government’s priority is to fund a paycheck protection program with $ 130 billion using coronavirus aid, relief and financial security, or $ 300 billion left over from the CARES Act. He said it was to provide and provide assistance to the sick aviation industry.
Economists have warned that recovery could stagnate without another injection of fiscal stimulus, given the ongoing pandemic and economic headwinds.Employment growth around the U.S. is slowing as large corporations continue to dismiss workers and the aviation industry is shrinking..
Gregory Dako, chief US economist at Oxford Economics, said: “Without rapid employment growth (which is unlikely at this stage of recovery) and increased financial assistance, households, businesses, state governments and local governments will grow. It will be more and more susceptible to worsening health. ” ..
I’m having a hard time paying the bills
Many businesses and households are facing financial difficulties as the pandemic shows few signs of easing and the previous lack of official development assistance. According to the Budget Policy Priority Center, a liberal think tank, one in three adults in the United States struggled to pay basic costs such as food and rent at the end of September.
After the virus broke out in the United States this spring, the Coronavirus Aid, Relief and Economic Security Act distributed about 160 million checks to Americans, $ 1,200 for individuals and $ 2,400 for couples in cash. Provided payment.
Another boost of $ 1,200 per adult will certainly help reduce financial stress, but one-time payments so far, for example, monthly rent, or groceries and other billing It will help the calligraphy. As with the first round of checks, they are distributed to everyone with incomes of $ 75,000 per single taxpayer or less than $ 150,000 per couple, regardless of whether they have lost their jobs or income.
Economists say other bailout policies have proven to be more effective in boosting the economy. For example, an additional $ 600 a week unemployment allowance helped strengthen households that were suffering from unemployment and loss of income until they lost their jobs in July. In May alone, the program boosted personal income by $ 842 billion, according to the Institute for Economic Policy. The money helped local businesses and prevented the economy from collapsing due to the blockade.
Meanwhile, according to UnemploymentPUA.com, which tracks the program, the additional $ 300 of weekly unemployment assistance Trump ordered has already been exhausted in most states. That effort, called Lost Wage Assistance (LWA), was created in August by utilizing the Disaster Relief Fund, but it only provides an additional 6 weeks of unemployment allowance.
“We, [LWA] “The program will create a $ 600 billion (annual) income cliff that leaves household income about 3% below pre-Covid levels in October,” Dako said. .. “
What’s the latest information on the second $ 1,200 stimulus check?
Source link What’s the latest information on the second $ 1,200 stimulus check?