The House of Representatives has approved a measure to increase stimulus controls for people with a set income level to $ 2,000. The bill is now headed to the Senate, where it faces an uncertain future.
Trump has backed the idea of bigger checks, but some Republicans don’t think an increase can be justified since it would raise the overall price of the stimulus bill.
Rep. Kevin Brady, a Texas Republican, set out the reason for opposing the larger payments in a Twitter post. The controls, he argued, “will do nothing” to help local businesses and get people back to work.
“We can do better,” he said.
Not everyone agrees with Brady.
Federal Reserve Chairman Jerome Powell, for example, has repeatedly commented on the need to combine central bank stimulus with spending ordered by Congress.
The Fed, it explained in November, is using its lending programs to an “unprecedented extent.” But loans are not useful in any case.
“Many borrowers benefit [lending] programs, as well as the economy in general. But for many others, getting a loan that can be hard to repay may not be the solution, ”Powell said during a news conference.
“Direct tax support may be needed. Elected officials have the power to tax and spend and to make decisions about where, as a society, we should direct our collective resources,” he added. “The fiscal policy actions that have been taken so far have made a critical difference for families, businesses and communities across the country.”
Stimulus Facts: How do we know how stimulus controls can be spent? The U.S. Census Bureau conducted a survey in June with some answers on how the first round of payments was used.
Most adults in households who received a stimulus check from the federal government say they used it or planned to use most of it for household expenses. That means money is back in the economy.
Meanwhile, 15.7% used their stimulus control to pay off debt and 14.1% planned to save it mainly.
Of those who spent their checks, 80% reported using the money for food, while 77.9% used it to rent out their mortgage and / or utilities, including gas, electricity and the Internet. About one-fifth reported spending money on clothes.
According to the Census Bureau, 8.1% of respondents said they would spend or spend the stimulus on household items such as televisions, electronics, furniture and appliances or recreational items such as fitness equipment, toys and games.
The result: Economists see direct payments as a way to help protect the fragile recovery and prevent people from falling into poverty as the pandemic continues to rage in the United States.
The latest news about the virus is terrible. The number of patients hospitalized nationwide with Covid-19 is the highest it has ever been, and at this rate, health experts warn that they may have to ration nurses, respiratory systems, and care.
The Boeing 737 Max is back
The Boeing 737 Max is destined to carry American passengers for the first time in nearly two years on Tuesday, when Americans will use the jet on a round trip from Miami to New York.
It will be a couple of notable flights for the 737 Max, which was established from March 2019 to November 2020 after two crashes that killed 346 people. The flights come after the U.S. Federal Aviation Administration last month approved changes the Boeing made to the jet.
Not everyone is on board: A Reuters / Ipsos poll showed on Monday that 57% of Americans surveyed said they were unlikely to fly in a Boeing 737 Max when they were told the story of the plane. About 37% say they are likely to go there once they have been in the air for six months or more.
American would not reveal how many seats it has sold on Tuesday’s flights, a route at 10:32 a.m. ET from Miami to New York’s LaGuardia Airport and a return at 2:30 p.m. But by late Monday morning, the airline’s site showed only one main cabin ticket still available for the afternoon return.
Most aviation authorities in other countries have not yet approved the use of the 737 Max. But Brazilian airline GOL became the first airline to offer passenger flights earlier this month and Aeromexico resumed flights with the plane last week between Mexico City and Cancun.
The problem with the 737 Max helped make 2020 a year to forget about Boeing. The company’s shares have lost about a third of their value since Jan. 1.
It is possible that Tesla will arrive in India
We’ve heard it before, but 2021 may be the year Tesla hits the world’s fourth largest market.
India’s transport minister Nitin Gadkari told CNN Business that Elon Musk’s electric vehicle company will start selling vehicles there next year. Tesla will then study manufacturing in the country, Gadkari added.
Tesla did not immediately respond to a request for comment. But Musk indicated on Twitter over the weekend that sales would begin in 2021.
The bottom line: The CEO said in 2017 that Tesla planned to sell cars in the country as soon as that summer. But the delay may have been well timed.
Car sales in India fell sharply in 2019 as new safety and emissions regulations raised prices and problems among Indian consumer finance providers came to loans.
Until next time
The S&P Case-Shiller price index will be released at 9:00 am ET.
Coming Tomorrow: The U.S. Energy Information Administration publishes a report on crude inventories.