While Congress debates President Joe Biden’s request $ 1.9 trillion in coronavirus relief funding – including a third stimulus control set at $ 1,400 – some Democratic lawmakers are pushing for an even bigger response: $ 2,000 a month until pandemic it is history.
Representative Ilhan Omar, a Democrat from Minnesota, and more than 50 other members of the House are urging the Biden administration to support this policy, according to a signed letter sent to Mr. Biden and Vice President Kamala Harris. The signatories to the Jan. 28 letter also include other progressive House leaders, such as representatives Alexandria Ocasio-Cortez of New York and Rashida Tlaib of Michigan.
“One more control is not enough during this economic and public health crisis,” they wrote. “Many families can’t afford to wait eight months between payments. To really rebuild better, families need stability and certainty through continued relief, they can’t be at the mercy of the Congress blockade.”
A recurring stimulus review is a family proposal by Harris, who last year introduced a bill in the Senate that would have provided $ 2,000 a month for every adult and child in the U.S. until the pandemic ended, though the effort did not gain strength.
Proponents of the idea point out that financial difficulties continue to spread in the United States ten months after COVID-19 effectively stagnates the economy. A new analysis by the Center on Budget and Policy Priorities, a liberal-minded think tank, found that a third of adults have difficulty paying their bills. Many of those who suffer are low-wage workers whose jobs were affected by the crisis, such as catering and retail.
Although the letter did not specify any amount for a recurring stimulus, Representative Omar tweeted Thursday that she would like to receive payments of $ 2,000 a month until the end of the global health crisis. So far, the federal government’s response efforts have included two direct payments to most middle- and lower-class families: a $ 1,200 check for eligible adults last spring and a $ 600 check per person in early this month.
Recurring payments should be aimed at “those who need it most and will spend it most quickly,” in addition to including “all immigrant workers, refugees, and their families,” Omar wrote. Older dependents and persons over the age of 16 who declare themselves dependent and who were excluded from the first two stimulus controls should also be included.
“Economic suffering”
The latest relief plan under debate in Congress would provide a third stimulus control of $ 1,400 to most U.S. households, with Wall Street analysts estimating that payments could be approved by the U.S. end of March.
Given the ongoing difficulties and high unemployment rates, a bold stimulus plan is needed to alleviate the current suffering and plant the seeds for economic recovery, said Gene Sperling, former director of the National Economic Council headed by President Clinton and President Obama, in a conference call with reporters Thursday.
“We know there is still a lot of economic suffering in our country,” Sperling said in the call for Invest in America Action, a public investment advocacy group. “The upper quartile may see unemployment around 5%, but for the lower quartile it exceeds 20%.”
For people in the bottom fifth of wage earners, unemployment remains at “depression” levels, he added.
Asked about Omar’s request for recurring stimulus payments, Sperling noted that Biden’s $ 1.9 trillion proposal includes several recurring aid programs, including $ 400 in extra weekly benefits without work and an increase in tax credits to $ 3,600 per child under 6 years of age. It is argued that this child tax credit could be paid monthly, he added.
Some economists have argued that direct stimulus controls are not as effective at boosting economic growth as other forms of aid, such as unemployment benefits and food stamps, which are offered to people in need. and they wear out relatively quickly. The effectiveness of the second round of controls has been mixed, with lower-income households spend money quickly, while richer households withdrew cash, a recent study found.
Ongoing payments would provide stability to families struggling with the crisis, Omar wrote. “Recurring direct payments until the economy recovers will help ensure people can meet their basic needs, provide racially equitable solutions, and shorten the duration of the recession,” he said.