After an extended break on July 4, lawmakers are back at work in Washington to discuss the possibility of providing a second stimulus check.
Unfortunately, reaching a consensus on whether to provide Americans with another coronavirus payment will not be easy. In fact, some key Republicans have voiced growing concern about the possible price associated with increased coronavirus relief, even as Senate Majority Leader Mitch McConnell indicated that several proposed bills will soon be tabled.
Despite the conflicts in Washington, there is a good chance that a second stimulus bill be It will be over soon, and a statistic indicates the unfortunate reason that is the case.
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About 181 million people live in states that are closing again
When Congress authorized the first stimulus check, lawmakers were pressured to act quickly because the country was in crisis. Across the United States, millions of companies had to close their doors and hundreds of millions of people were forced to enter their homes because governors and local officials put cities and states under lock and key.
Unfortunately, history repeats itself when it comes to closing the United States, as the nonpartisan Center for Budget and Policy Priorities now reports that more than half of the US population lives in a state that has paused its plans to reopening after trying to kick-start the economy or that actually tightened the restrictions again after loosening them. In fact, more than 181 million Americans live in the 22 states that have had to pause or reverse plans to reopen. That is a huge and devastating number.
If this trend continues, things could get worse this time for a few key reasons:
- Businesses that survived the first close may not be able to survive the second, especially if they purchased inventory in preparation for the reopening, but will now lose value because they were ordered to close again.
- People may have depleted the financial reserves they had available during the first shutdown, including spending on the first stimulus check, and are now facing a second shutdown as soon (perhaps even before going back to work).
- The fact that cases increased so rapidly and states were forced to close again within weeks of reopening suggests that this problem will persist for a long time. Economic recovery is likely to be very slow if that is the case, and a deep recession may continue until a vaccine is developed or more effective treatments are developed.
With so many people in financial difficulties and the possibility of unemployment rising again due to repeated business closings, Congress almost certainly must act quickly to provide relief. And a second stimulus check is the fastest way to get cash to those who need it.
You need to prepare for any possibility
With bipartisan support for a second stimulus payment and the president pushing for one, it seems hard to believe that lawmakers fail to reach consensus and approve of anything, especially with more than 181 million people living once again under various stages of blockades. .
But while you must keep the pressure on lawmakers by contacting their representatives, you must also make sure you have done everything possible to be ready for a protracted economic recession without government help. The best way to do this is to accumulate as much cash as possible. And if you have money invested in the stock market, be sure to keep your investments through a deepening recession that could well be caused by more closings with no federal aid available.
