TOPLINE
President Trump has told his aides that he supports sending another stimulus payment directly to Americans, the Washington Post Although some officials in his administration are not on board, the disclosure comes when lawmakers disagree on how to tackle the economy in the wake of the coronavirus pandemic.
President Donald Trump speaks to reporters before leaving on Marine One at the South Lawn of the … [+]
KEY FACTS
According to the Send, who quoted three people familiar with the White House’s internal deliberations, Trump believes the payments will help boost the economy and his chances for reelection in the fall.
Trump’s enthusiasm for checks is at odds with some Republican leaders who are wary of the extra spending that would increase the national deficit, creating what the Send described as a “rift” between conservatives.
the Send reports that Treasury Secretary Steven Mnuchin has spoken in favor of sending another round of checks, while senior economic adviser Larry Kudlow opposes sending another round as big as the first (when 159 million households received payments).
Senate Majority Leader Mitch McConnell has been one of the strongest voices opposing yet another round of payments, while many Democratic lawmakers have advocated for even higher payments.
On Monday, after being asked if the government planned to send more checks, Trump replied that another “generous” bipartisan stimulus package is in the works, but did not specifically talk about direct payments.
Many interpreted his comments to mean that another round of stimulus checks is on the way, but the White House declined to specify. whether Trump was referring to checks or more stimulus legislation in general.
Key background
The $ 2.2 billion CARES Act, signed by President Trump in late March, authorized the IRS to send the first round of checks: $ 1,200 per person for qualified citizens (those who earn less than $ 75,000 per year), and others $ 500 sent to families with children under the age of 17. White House officials and Republican negotiators have decided they will not hold negotiations on the next round of stimulus legislation until after Congress returns from recess in late July. May’s better-than-expected job numbers may have affected the process, with some lawmakers, including President Trump, taking the surprising good news as a sign that the economy is already on the road to recovery. The $ 3 trillion Heroes Act, a massive piece of economic bailout legislation proposed by House Democrats last month, includes a provision for another round of checks, though Senate Republicans have said they will not support the bill. law.
Tangent
New research from Columbia Business School says the first round of checks was likely the economic lifeline that many struggling households needed during the onset of the recession. Investigators RA Farrokhnia and Michaela Pagel found that, on average, people who received checks spent a third of them at a rapid rate on essentials like food and rent, and then saved the rest. Unlike direct stimulus payments sent by the government in 2001 and 2008, Farrokhnia and Pagel discovered that CARES Act checks are generally used for rent, bills, food, and nondurable goods.
Crucial quote
“Given the precedence and amount of checks, one might have expected more spending on cars, electronics, or appliances that would eventually have a greater impact on the economic recovery,” said Professor RA Farrokhnia, “but based on transaction data. In our analysis, it is clear that these controls are very necessary to help households stay afloat in these difficult times. “
Further reading
When asked about the possible second stimulus control, Trump says there will be a second bipartisan package. (Forbes)
This is how you are likely to actually get another $ 1,200 stimulus check (Forbes)
Democrats just released a $ 3 trillion stimulus wish list, which includes another $ 1,200 round of checks (Forbes)
Lawmakers are bitterly divided on how to get more cash stimulus for Americans (Forbes)
