Millions of Americans have lost their jobs in the wake of the COVID-19 crisis, while many more are grappling with income insecurity. Fortunately, the CARES Act has already provided relief in the form of stimulus payments of $ 1,200, most of which have been canceled in recent months. But many Americans feel that a single stimulus check was not enough and are eager to get additional cash to pay bills and face non-negotiable expenses.
Unfortunately, efforts to put that money in the hands of Americans have so far been unsuccessful. The Democrats’ proposed HEROES Act, which requires additional cash stimulus, is currently stalled in the Senate, and considering that Republican lawmakers have voiced their opposition, it is unlikely to be voted on. Of course, that’s just a proposal that is, and while we may see another aid package unveiled in the coming weeks, here are three reasons why a second stimulus check may not be part of it.
1. Unemployment fell in May
In April, the unemployment rate in the United States reached a grim milestone: it reached 14.7%, the highest measure recorded since the Great Depression. May’s numbers, while still high, were down 13.3%, and that information alone, though skewed to some degree, could lead lawmakers to oppose a second round of monetary stimulus on the grounds that things are improving. and, therefore, it is not necessary.
2. The United States economy is reopening
Although many states are reporting an increase in COVID-19 cases, the country appears to be moving forward with reopening plans. That means more and more jobs are likely to be added as companies come to life. As such, it is easy to argue that cash follow-up stimulus is not necessary, or at least not yet.
3. Aid money could be used for other purposes
Much attention has been paid to the cash stimulus since it became clear that the initial round was not enough, but some lawmakers believe relief aid should focus on encouraging unemployed Americans to return to the workforce. The 2020 U.S. Reopening by Supporting Workers and Businesses Act, which requires a $ 1,200 re-employment bonus for those returning to a job, could replace a second stimulus check.
Its advocates argue that if people are not motivated to return to the workforce, we will have an even more difficult time recovering from our current recession. Also, bringing people together on a stable salary could stimulate the economy in a very significant way, eliminating or at least reducing the need for a round of follow-up payments.
Do not flatter yourself
President Trump recently indicated that he expects a generous stimulus bill to be passed sometime in July. But whether that bill includes a real stimulus payment has yet to be determined. Therefore, Americans in financial distress should prepare for the possibility that the initial round of cash stimulus they received is, in fact, the only stimulus money they will get this year.