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Thursday, October 6, 2022

Stimulus Check: Why It Is Still Needed

Over 169mn stimulus check payments have been made by the IRS during the 3rd round so far. However, lawmakers as well as the general public are still voicing the need for another or preferably recurring payments.

The Stimulus Check’s Assistance Is About To Run Out

The financial assistance provided by the stimulus checks has not erased the financial distress of millions. Moreover, after the recent surge caused by the Delta strand, it seems the aid is running out faster than the finances can be balanced.

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To aid with that, the Biden government had initiated the advance Child Tax Credit payments. However, that too is about to end within 2 months, with the last check being sent out on 15th December. Regardless, the American Families Plan by Biden may allow more tax breaks for parents as well as make the CTC expansion permanent at least till 2025.

Thus far, the stimulus check payments have been used by most to reduce debts or save them for another emergency situation like the pandemic. 70% of recipients claim that the amount is necessary for their finances over the short term. Even though that number is falling every month, once all the stimulus truly ends, economists are worried over the hardships surging once more.

Several top economists think that recurring direct relief aid is the only solution. Relief programs by the government have left out millions who need it. According to a study in March, only 40% of unemployed workers ever got an unemployment benefit payment. As such, even if the number decreases, thousands of Americans continue to live according to every paycheck.

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However, any more relief payments happening seems highly unlikely at the present stage. Even Biden’s upcoming Build Back Better plan does not seem to hint at any such provision.

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