Victories of the two Democrats in Georgia Elections elected to the Senate According to analysts, this spring could mean a third stimulus control for Americans this spring. This would provide crucial financial support for households this month receiving payments of $ 600 led by the most recent assistance bill, an effort that both Democrats and some Republicans have criticized for doing too little to help families suffering from the coronavirus pandemic.
CBS News projects that Democrats Jon Ossoff and Raphael Warnock have defeated current Republican Senators Kelly Loeffler and David Perdue. The startling result will result in a 50-50 split between Senate Democrats and Republicans, which will give Vice President-elect Kamala Harris the tiebreaker vote. According to political and financial analysts, this will facilitate the passage of another stimulus relief bill, which President-elect Joe Biden said he supported.
Another so-called economic impact payment would come as a result of the most recent relief measure, a $ 900 billion bill that President Donald Trump delayed and criticized the $ 600 payments as “ridiculously low.” Democrats and some Republicans had supported raising checks to $ 2,000 per person, but the effort has failed because of opposition of Senate Majority Leader Mitch McConnell.
A big question is whether lawmakers could push for cash payments of $ 2,000 or $ 1,400, the latter representing the difference between $ 600 checks and the canceled effort to raise them to $ 2,000 on the most recent bill. On Jan. 10, Biden tweeted that $ 600 “just isn’t enough when you have to choose between paying rent or putting food on the table.”
“We need $ 2,000 stimulus checks,” he added.
“We expect a growing expectation that Democrats will pursue an additional stimulus, with a $ 2,000 check (or at least the remaining $ 1,400) as the main item,” investment bank analyst Ray Mmond James Ed Mills said in a report after the Georgia election.
Biden: The last help is a “down payment”
Biden described the $ 900 billion stimulus bill approved last month as a “down payment” for a more comprehensive relief package. That could translate into a new package that would range from $ 1 trillion to $ 1.5 trillion, according to Heights Securities analyst Hunter Hammond.
A package of sweetened stimuli would likely arrive in March, Hammond and Mills predict. This is because the most recent relief measure extended unemployment programs through mid-March, putting pressure on Congress to act on additional financial support through this cut to continue with the cuts. jobless benefits for millions of unemployed Americans.
Democrats are likely to push for a new round of $ 2,000 checks, Hammond predicted, noting that both Mr. Biden and Warnock and Ossoff had campaigned on the issue. While waiting for the candidates before this week’s vote, Mr Biden said his election would help get $ 2,000 in checks “immediately to help people who have real problems.”
8 million more poor
Even with previous stimulus aid, eight million Americans they have fallen into poverty during the coronavirus pandemic. Millions of other people are experiencing a range of difficulties, from food insecurity to problems paying bills, after the crisis has disrupted the economy.
The $ 600 checks issued by the Treasury Department last month can last most needy Americans no more than six weeks, according to financial services app Earnin. The firm found that people who had lived payroll to payroll and received the initial 1,200 checks last year spent their money in a week.
Some economists say much more funding is needed beyond the recent $ 900 billion package to help the economy until coronavirus vaccines are widely distributed, which may not be until this summer or fall.
According to the Institute for Economic Policy, up to $ 3 trillion could be needed to ensure a speedy economic recovery. The left-wing think tank noted that the latest stimulus package omitted funding for state and local governments, which have seen a collapse in tax revenues due to the crisis.
While stimulus controls help families overcome the crisis, most economists believe other aid measures are more effective, especially programs aimed at people who are currently financially successful, such as benefits. atur. This is because cash payments are distributed to almost all middle- and low-income families, regardless of whether the crisis has affected them financially.
“Controls are generally less powerful in supporting spending than unemployment benefits,” wrote US economist Gregory Daco, head of Oxford Economics, in a recent research report. He added that the $ 900 billion relief bill “will probably not reach what it takes to avoid a difficult winter.”