The Case for Recurring Stimulus Payments
However, there are genuine reasons why some senators continue to push for greater government help. Here are the top reasons Congress should support repeating stimulus funding until the epidemic is over.
1. It is not over yet.
Enter any Midwestern city. There will be no mask insight, as though coronavirus fears are obsolete. Yet, in only one week, almost 2,200 Missourians perished from COVID. During the same seven-day period, COVID-related fatalities were recorded in 49 of 50 states. Parents supporting families, business owners abandoning firms, and average people facing sky-high medical expenditures.
We now have COVID-19, the delta variation, and maybe the recently found omicron strain from Africa. COVID continues to kill, and those who survive may have long-term problems that prohibit them from functioning.
Due to the delta variant’s spread, Oxford Economics reduced its global economic growth prediction for 2021 from 6.4 to 5.9 percent. And so forth.
Legislators must reject the necessity for extra stimulus monies by denying the impact of COVID.
2. Joblessness remains
The seasonally adjusted national unemployment rate for October was 4.6%, down from the previous October (when it was 6.9 percent ). Although still above the pre-pandemic level of 3.5 percent. In addition, although many firms are employing, there are still millions fewer workers than previously.
Many individuals are not returning to work, and those who have returned are departing in historic numbers. For others, it’s a concern of being exposed to a deadly infection at work. Others have opted not to return to their pre-epidemic existence since the pandemic caused them to reflect. They’re creating companies, going back to school, and doing other things. Some have lost work as corporations tighten their belts to squeeze profit from the remaining staff.
Interesting side note: Republican-controlled states blamed high unemployment on generous unemployment benefits. These states withdrew from the Federal Pandemic Unemployment Compensation (FPUC) program, thinking that removing the additional $300 weekly compensation would suffice. What transpired was significantly more intriguing.
Between April and July, states that eliminated FPUC saw a 0.9% increase in jobs, which pleased them. However, states that kept FPUC saw a 1.6% increase in employment growth. While states without FPUC had a 0.2 percent drop in unemployment, those with enhanced payments saw a 0.4 percent decline.
To dispute the need for further stimulus money, Congress must deny that millions of Americans are unemployed.
3. Stimulus checks
Some Americans utilized stimulus funds to pay off debt, while others used them to cover basic costs and save the remainder. Savings is vital, especially when you consider that in 2019, 41% of families aged 25-64 did not have enough saved to cover an unexpected $400 bill. It reduces the need to borrow money at excessive interest rates.
According to the Census Bureau, the first two stimulus payments alone lifted 11.7 million individuals out of poverty. This comprises 3.2 million minors, 6.4 million adults, and 2.1 million seniors. It helped Americans pay bills, purchase food, and lessen worry and sadness, particularly among the poorest.
In fact, there’s no reason to assume Congress will enact legislation allowing for continuous stimulus cheques for all Americans. Still, there’s a case for providing ongoing aid to the poorest among us. No senior should have to pick between insulin and food, no youngster should go hungry to school, and no American should be untreated due to lack of funds.
It’s excellent for everyone if repeated stimulus cheques help impoverished Americans survive the epidemic.