Stimulus Checks Forever? One Lawmaker Wants $2,000 Checks Every Month.
In a January press release, Rep. Ilhan Omar said: “A one-time payment of $2,000 is simply not enough. The American people are counting on us to deliver transformative change, and we need to meet the moment by delivering monthly payments of $2,000.”
To say that the Internal Revenue Service has been busy this month would be a huge understatement.
In an unrelenting effort to provide much-needed cash to millions of financially struggling Americans, the agency has confirmed that a total of one hundred twenty-seven million coronavirus relief checks—worth approximately $750 billion—have been sent out under President Joe Biden’s American Rescue Plan.
But even before the dust settles on that monumental achievement, there is already increasing chatter about a fourth round of direct stimulus payments. Know that to date, Congress has green-lighted the delivery of three stimulus checks to most Americans—a $1,200 check in April 2020, $600 in December, and the current $1,400 payments.
Although the economic damage due to the ongoing pandemic is still apparent in many regions of the country, the consensus among economists points to the fact that the health crisis is on its last legs.
For example, Goldman Sachs is forecasting a whopping 8 percent GDP growth this year, while Treasury Secretary Janet Yellen is projecting that the United States may reach “full employment” by 2022.
According to Fortune, Moody’s chief economist Mark Zandi said he expects the Biden administration to “propose another two fiscal packages later this year, the first being a large infrastructure program and the second expanding a range of social benefits including healthcare, housing, education, child and elder care.”
He continued: “These packages will be designed to address long-term economic problems such as infrastructure, climate change, and the skewed income and wealth distribution,” but “I wouldn’t consider these packages as fiscal stimulus, designed to support the economy in the short-term.”
With that in mind, “I don’t think there will be a fourth round of stimulus checks,” he concluded.
Many Democratic lawmakers, however, appear that they don’t share that particular view. Even before the American Rescue Plan was signed by the president, several Democratic members of Congress expressed concern that the third stimulus check was not nearly enough to lift the economy out of the grips of the pandemic.
“Another one-time round of checks would provide a temporary lifeline, but when that money runs out, families will once again struggle to pay for basic necessities,” fifty Democratic members of the House of Representatives stated in a letter.
“One more check is not enough during this public health and economic crisis,” they added.
In a January press release, Rep. Ilhan Omar said: “A one-time payment of $2,000 is simply not enough. The American people are counting on us to deliver transformative change, and we need to meet the moment by delivering monthly payments of $2,000.”
More recently, a group of ten Democratic senators petitioned Biden to include more money for direct payments in the next spending bill—and that the checks should be sent out on a recurring basis.
“We urge you to include recurring direct payments and automatic unemployment insurance extensions tied to economic conditions in your Build Back Better long-term economic plan,” the senators wrote.
“This crisis is far from over, and families deserve certainty that they can put food on the table and keep a roof over their heads. Families should not be at the mercy of constantly-shifting legislative timelines and ad hoc solutions.”
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.