CORONAVIRUS

Second stimulus check: what is Mark Cuban's proposal?

With a view to kick-starting the American economy amid the coronavirus crisis, investor Mark Cuban has called for all US households to get recurring stimulus checks.

Second stimulus check: what is Mark Cuban's proposal?

Billionaire investor Mark Cuban has reiterated his belief that Americans should be given recurring stimulus checks in a bid to stimulate the United States’ struggling economy amid the coronavirus pandemic.

Cuban proposes $1,000 stimulus checks in "use it or lose it" scheme

Cuban, who is the owner of NBA franchise the Dallas Mavericks, told CNBC this week that all US households should be given $1,000 every two weeks for the next two months, declaring: “Those without [help] are struggling badly - we need to get them help.”

As part of such a scheme, Cuban says, families should not be allowed to save the $1,000, but should have to spend the money within 10 days of receiving it - a “use it or lose it” rule that would help to get cash flowing throughout the nation, he explained.

Aim is to "get that money every two weeks into the economy"

The whole goal is to get that money every two weeks into the economy,” the 62-year-old said. “Once businesses start having demand, even if they’re closed and working online, then there is a reason for them to be able to bring back employees and retain those employees if demand is sustained.”

Cuban first put forward the idea back in May, tweeting that biweekly checks of $1,000 would “cost about $500b, but […] hopefully [result in] keeping most businesses alive”.

$2,000 monthly checks proposed by lawmakers earlier this year

Cuban’s is not the only proposal for regular stimulus checks in the US since the Covid-19 crisis began. In April and May, two groups of lawmakers unsuccessfully tabled bills pushing for monthly payments of up to $2,000 during a pandemic that has led unemployment to rise sharply in the country.

According to the most recent figures released by the Bureau of Labor Statistics, 13.6 million people in the US are currently unemployed, amid a jobless rate that is over twice as high as pre-pandemic levels. In all, around 60 million people have filed first-time unemployment-insurance claims since March.

Americans still awaiting second one-time stimulus check

As part of the CARES Act, a $2.2tn coronavirus relief bill passed in March, qualifying Americans have received a one-time stimulus check of up to $1,200, plus an additional credit of $500 per dependent under the age of 17.

Although Republicans and Democrats both appear to favor a second round of one-off checks, they have been unable to agree on the terms of an overall relief package featuring such a measure.

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