The victories of the Democrats Monday in GeorgiaIt could mean a third motivational screening for Americans this spring, according to analysts. This should provide crucial financial support to families as is the case this month Directed by the latest relief bill – an effort that both Democrats and some Republicans have criticized for doing little to help families grappling with the coronavirus pandemic.
CBS News Projects Democrats John Usov and Raphael Warnock have defeated incumbent Republican Senators Kelly Loeffler and David Purdue. The surprise result would split 50-50 between Senate Democrats and Republicans, giving Vice President-elect Kamala Harris the cutoff vote. That would facilitate the passage of yet another incentive-relief bill, which President-elect Joe Biden previously said he supports, according to political and financial analysts.
The so-called economic impact payment will come on the heels of the most recent relief measure, a $ 900 billion bill that President Donald Trump has shelved and criticized the $ 600 payments as “ridiculously low.” Democrats and some Republicans would have supported raising the checks to $ 2,000 a person, but that effortFrom Senate Majority Leader Mitch McConnell.
The big question is whether lawmakers might pay $ 2,000 or $ 1,400 cash, the latter being the difference between the $ 600 in checks and canceled efforts to raise it to $ 2,000 in the most recent bill. On January 10, Mr. Biden tweeted that $ 600 “simply isn’t enough when you have to choose between paying the rent or putting the food on the table.”
“We need incentive checks of $ 2,000,” he added.
“We expect expectations to grow that Democrats will continue to stimulate additional stimulus, with a $ 2,000 check (or at least $ 1,400 remaining) as a key item,” Ed Mills, an analyst at investment bank Raymond James, said in a report after the Georgia election.
Biden: Latest ‘Down Payment’ Help
Biden called the $ 900 billion stimulus bill passed last month a “down payment” for a more comprehensive relief package. That could translate into a new package ranging from $ 1 trillion to $ 1.5 trillion, according to Heights Securities analyst Hunter Hammond.
Hammond and Mills expects that the sweetened stimulus package will likely be released in March. This is due to the extension of the latest relief measures for unemployment programs until mid-March, which is pressuring Congress to act on additional financial support through these cuts to continue unemployment benefits for millions of unemployed Americans.
Hammond predicted that the Democrats are likely to push for a new round of checks worth $ 2000, noting that both Biden, as well as Warnock and Osof, have campaigned on this issue. While lying in wait for the candidates ahead of this week’s vote, Mr. Biden said their election would help get $ 2,000 checks “outside the door immediately, to help people who are facing real problems.”
8 million are poor
Even with previous stimulus aid, 8 million Americans Coronavirus pandemic. Millions more are struggling with a range of hardships, from food insecurity to difficulty paying their bills, as the crisis has upended the economy.During the
According to Earnin Financial Services app, the $ 600 checks issued by the Treasury Department last month may not last more than six weeks. The company found that the people who were living on the paycheck to get the paycheck and who took 1,200 initial checks last year spent their money within one week.
Some economists say more funding is needed beyond the latest $ 900 billion package to help the economy until coronavirus vaccines are widely distributed, which may not last until summer or fall.
As many as $ 3 trillion may be needed to ensure a rapid economic recovery. Depending To the Economic Policy Institute. The left-leaning think tank noted that the recent stimulus package neglected state and local government funding, which saw a drop in tax revenue due to the crisis.
Although stimulus checks are helping families weather the crisis, most economists see other relief measures as more effective – especially programs targeting people currently in financial hardship, such as unemployment benefits. This is because cash payments are distributed to nearly all middle and low income families, regardless of whether they have been financially affected by the crisis.
“Checks are generally less effective in supporting spending than unemployment benefits,” wrote the chief US economist at Oxford Economics Gregory Daco in a recent research report. He added that the $ 900 billion relief bill “will likely fall short of what is needed to prevent a harsh winter.”