The White House and many influential Senators are considering the benefits of programmed direct relief measures in the future if the economy slides significantly below a certain level.
Even as many Democratic lawmakers urge the White House to go in for a 4th and even a 5th stimulus check, others have appealed to the President to consider direct and automatic payments for struggling Americans so that the economy goes into a tailspin.
A Direct And Recurring Stimulus Check
they do not have to depend on legislative action each time the
Millions of Americans have also supported the move for direct, additional, and recurring stimulus checks to tide over the current economic downturn that still has the American economy in its grip.
And they too have demanded that any future legislation should go in for economic support that will not be tied down to the whims of unsympathetic congressmen.
And every time the economy is affected, people will receive direct benefits depending on certain criteria. And in any future crisis, people would not need to worry about getting food on the table, or vexing about paying their bills.
‘Automatic Stabilizers’ To Secure Relief Payments
Democratic lawmakers have said that such relief payments would not have to go through Congress that delays the whole process and denies immediate relief to the deprived. It would instead hasten the process of sending out immediate relief each time a crisis hits the economy.
Such a move would ensure that people get direct aid and would save more Americans from sliding into poverty even as the legislature quibbles over the finer points of a bill.
The Trauma Of Uncertainty
In the current economic downturn triggered by the pandemic, people had to wait as Congress haggled over the amount to be given and even the necessity for any stimulus payments. Republicans, puppets at the end of the strings pulled by the economic powerhouses, we’re hell-bent on putting a spanner in the works at every step of the process.
Seven Democratic lawmakers, part of the powerful and influential House Ways and Means Committee, wrote to President Biden urging him to ensure that workers and families should not be weighed down by worries about putting food on the table, paying for essentials, or having a roof over their heads.
More than 80 Democratic lawmakers have supported the need for one more stimulus check at the minimum.
Surveys have revealed that much of the stimulus checks were used up in paying for immediate needs, though some could save and spend it on buying insurance. There has been a spike in sales of life insurance in the past year.
Economic Indicators To Decide On The Necessity Of A Stimulus Check
The lawmakers have said that economic indicators like the rate of unemployment and the growth of the economy should be key factors in deciding on the need for future stimulus support.
The same should also be true for unemployment benefits. The end to the federal support for the jobless, extended till September 6, 2021, could push more Americans below the poverty line.
More than 2.3M people have supported the petition started by a restaurateur for a monthly stimulus check of $2,000 for adults plus $1,000 for kids. The payments ought to be paid for the extent of the economic crisis, they urged.
The petition, on change.org, has said that it is up to the legislature to make sure that economic support should be triggered every time certain danger lines are crossed. During periods of crisis, waiting for a legislative concurrence is time-consuming and dependent on the vagaries of the political system.
Supporters Of More Stimulus Checks
Many organizations are in favor of more stimulus support or cash support that could take various other forms. Humanity Forward has supported the move for a fourth stimulus check, saying that economic hardships are forcing people to ignore health risks when going out for work.
They have advocated the system of the universal basis of income. It would ensure that monthly payments to families would ensure basic income support to people hovering near the poverty line.
The Child Defense Fund, a key child advocacy group in American has been focused on the betterment of affected children.
They have advocated expansion in the Child Tax Credit payments, something that President Biden is also supporting. They are concerned about the negative effect that poverty has on children. And supporting children would also go a long way in reducing racial disparity and ensure a level playing field for all in the future.
The CDF has brought on board 120 different organizations calling for a permanent Child Tax Credit. They all have agreed that families, especially from minority groups, were in dire need of financial support to support their children.
The Centre for Budget and Policy Priorities along with the Center for American Progress has showcased the impact that direct payment, as well as unemployment benefits, had had on reducing poverty in the country. They said that the decrease in poverty was a direct result of the stimulus intervention.
Reaction From The President
There has not been any reaction from President Joe Biden yet, neither has he commented on demands for additional stimulus checks. But his spokesperson has in a recent interaction with the media has let out that the President is open to further payments.
Jen Psaki, the press secretary at the White House said that President Biden is open to all suggestions and it was for him to decide on the steps that would be better suited for future economic progress.
But she also added that President Biden was already ensuring the process that would do the maximum good for the economy.
The Infrastructure Bill
The 2 trillion dollar infrastructure bill is expected to overhaul the infrastructure in unprecedented ways. The Senate will try to pass a budget resolution that will allow for a reconciliation process and allow the past passage of the infrastructure bill with a simple majority.
The fracture needs urgent repair even as the American Society of Civil Engineers has said that around $2.6 trillion would be needed over the next decade, and the amount would need to fix the nation’s crumbling bridges, roads, and other major infrastructure that would, in turn, benefit the American economy.
The Stimulus Support In Hand
The closest stimulus support continues to be the upcoming child tax credit advance payments. Set to start on July 15, the CTC would ensure a monthly payment of up to $300 per child per month over 6 months. That would be half of the payment and the rest would be adjusted against the 2021 returns to be filed next year.
The proposal for an autopilot mode for future stimulus checks has also come in from opposition from the Congressional Budget Office that is tasked with giving impact scores for proposals that come in through the legislature. They have said that the concept of automatic stabilizers as determinants for stimulus checks would be an enormous burden on the economy.
Going It Alone
While we wait for the legislature bickering to end, there are ways that we can look after our budget and stretch our resources that extra bit.
Many people had to fall back on high-interest financial instruments to see them through the economic crisis. And if you are still dependent on them, say a credit card, the recurring expenses would be astronomical. Going for debt consolidation would be a sensible option, given that interest is low at this point.
If you are paying a home mortgage, you should go in for a refinance to restructure your mortgage payments when they are at a 30-year low rate of less than 3%. You also need to be alert when your home and car insurance comes up for renewal as the rates are similarly low on that front.