“There are a lot of discussions going on. Probably, we would like to focus on those people who lost their jobs and need it the most,” White House economic adviser Larry Kudlow said in an interview with Fox Business on Tuesday.
The Treasury Department and the Internal Revenue Service worked to send the money through direct deposit, or as a check and debit cards mailed. They started dating in mid-April and have been disbursed to nearly 160 million people totaling $ 267 billion.
But some economists say that a targeted approach would be more effective.
Giving the upper class more money is not going to solve that problem if there is still a public health crisis and some people are not comfortable going out to eat and shop.
So Friedman argues that the new stimulus money should target both low-income households and people who saw a large loss of income.
“I’m not a fan of $ 1,200 checks. For some people, it was very little if they just lost their job. For other people, who kept their jobs, it was not necessary,” said Stijn Van Nieuwerburgh, professor. at Columbia Business School.
“The pandemic is not yet over. We cannot fire all of our bullets in the first few months,” said Nieuwerburgh.
Both economists aim to extend unemployment insurance benefits in some way as a way of targeting those who need it most.
Congress increased unemployment checks by $ 600 per week and added 13 weeks of pay, beyond what the states offer. The additional money will expire on July 31 without congressional action, but the 13-week extension will remain in effect until the end of the year.
Extending unemployment benefits could be something else Congress considers in July, along with additional support for small businesses and financing for states and cities.
There is now broad agreement that something needs to be done, but there is a divide between Republicans, who control the Senate, on how that should be, and are not unified on whether it should include more direct stimulus payments.
“I don’t think it’s a good idea right now,” Senator Pat Toomey of Pennsylvania told CNN.
CNN’s Phil Mattingly and Jason Hoffman contributed to this report.