Can a fourth stimulus be passed before September? Negotiations update on new relief bill
As economy recovers, expiry date for stimulus checks, which secure roof and food for thousands of families, becomes more real.
For many Americans still suffering the struggles of global pandemic, stimulus checks are their only insurance to secure basic needs such as a roof and food. With the unemployment benefits to expire on September 6, the possibility of a fourth stimulus check to be passed becomes more unlikely to happen.
Fourth Check supporters
Some Democrats such as Ron Wyden, Bernie Sanders and Elizabeth Warren sent a letter in March to President Joe Biden asking for automatic unemployment insurance as well as direct payment as long as economic situation is affected by global pandemic. The Senators argued that even though economy is getting better, the crisis is far from over and for many families stimulus checks are preventing them from having to leave their homes and are also the reason why they can put food on the table.
This is not the only letter President Joe Biden and Vice President Kamala Harris have received regarding this issue, 53 Representatives showed a similar position in a previous letter. Opinion also shared by some integrants from the House Ways and Means Committee, who back in May wrote a letter stating two more checks could keep 12 million more Americans out of poverty, reduce poverty in 2022 by nearly 70 per cent.
In addition, it is worth noting that according to a 2021 poll, two out of three Americans agree with the extension of monthly $2,000 payments to everyone in need as long as the pandemic lasts.
Inflation is also an issue that helps the dream of a fourth check to remain alive. Many people are even more worried now that America is recovering, as the economy has grown faster than ever, this means the inflation is also higher. According to latest data estimations, prices will rise up to 5.5 per cent in 2021, a vast amount if we compare it with the 2019 2.3 per cent inflation or the 1.7 per cent that took place in 2017.
A new stimulus check is unlikely to happen
Despite all the political support given, it doesn’t make the idea of a fourth stimulus check more real. In fact, it’s highly unlikely.
There are many reasons to believe the impossibility of stimulus’ extension. In the first place, as vaccinations are increasing at a slower than Spring, but steady pace, with 60 per cent having received at least one dose, the countries’ economy continues to recover from the pandemic.
The loosening of restrictions have helped businesses both local and national, and now more workplace is available. Even companies are manifesting the lack of workers available to fill required vacancies, resulting this in an wage increase for workers.
Secondly, the inevitable safety restrictions over the past year and a half have prevented people from spending as much money. This savings along with the last three stimulus checks, and the recent Child tax Credit has increased wisely people’s spending power.
Future seems brighter as people manage to acquire a better financial position. Therefore, with a constantly growing economy, the release of a fourth stimulus check, which is meant to be an urgency aid lacks of sufficient evidence to be implemented.
Other aids to rely on
Even though a fourth stimulus is unlikely to happen, there are still aids being provided by the American Government to help those people with basic needs. One of the most recent credits is the improved Child Tax Credit, where families will be receiving $3,600 each year per child in between six and seventeen. Meaning that if you have two children you will receive a well $7,200 aid a year.
Those payments which are done proportionally every month started in July and will go through all over to end of December 2021.