Clara Son / Orange County School of the Arts 10th Grad
Towards the end of December, a hefty stimulus bill was approved and sent out by Congress. This five thousand page bill held a whopping 900 billion dollars, all divided into sectors of helping individual Americans, boosting education, fixing transportation, aiding small businesses, and more. The bill has gotten largely bipartisan approval and has lent a helping financial hand to the millions struck by the Covid-19 caused job loss and debt crises across the nation. However, with fears of too much money being spent on these checks, many have raised the following question: do stimulus checks actually have a significant effect on the US economy?
The answer is absolutely yes.
The first key way as to how stimulus checks affect the economy is by keeping individuals afloat.
Essentially, these stimulus checks give 600 per person and an additional 300 per week in unemployment benefits. The people who qualify for these checks are Social Security, Supplemental Security Income, and Veteran Affairs recipients, as well as those who make a certain annual income of less than 75,000.
Now, we are also familiar with the fact that this pandemic has left the world in a recession. In just the US, roughly 20.6 million people have lost their jobs due to covid. Additionally, a quarter of Americans say that they or someone in their household have been laid off due to covid. Clearly, stimulus checks compensate for unemployed people to take care of their needs, from buying groceries to taking care of their families. Stimulus checks also aid self employed and gig workers. It becomes evident that these stimulus checks go to those who are in dire need of financial aid, and by lending them a financial helping hand, they are able to take care of their needs and even get back to work, thus supporting the economy.
Stimulus checks also have a significant impact on the US economy in the sense that they boost business productivity. This occurs directly, because the recently passed stimulus bill dishes out 325 billion for small businesses who use the money for debt relief, paying their workers, and budgeting their needs. Surprisingly, stimulus checks also boost business productivity in more indirect ways, such as improving public health and taking steps to reopen the economy. December’s bill had also handed 69 billion to vaccine distribution and public health services, and it’s clear that with public health improving, regulations on businesses can roll back and they attain more customers and activity in general. As some icing on the cake, stimulus checks generally boost consumption, saving, and encourage investments. More people are lifted out of financial crises and can function more efficiently.
It’s been established that stimulus checks greatly improve the US economy and help Americans with their individual financial situations. Thus, for the future, Congress should take steps to pass more stimulus checks and to also increase the money provided in each bill. There has been recent discussion over increasing the individual 600 to 2000, so that each person qualifying for a check gets an additional 1400. This is backed by bipartisan approval.
Ultimately, the efficacy of stimulus checks should not be underestimated or doubted. Clearly, these economically beneficial checks should be increased for the sake of the millions of Americans who depend on them.
<Clara Son / Orange County School of the Arts 10th Grad