The United States is dealing with a full-blown recession fueled by COVID-19, and in April, the unemployment rate reached 14.7%, the highest since the Great Depression. The news was better, however, in both May and June.
In May, unemployment was only 13.3% (“only” is a relative term), and in June, it fell further to 11.1%. This is all good news. It means that millions of jobs have been added in the past two months, and that we may be on the road to economic recovery.
But that recovery may not be as fast as we’d like, and Americans are still very desperate for help. In March, the CARES Act was passed allowing, among other provisions, a one-time stimulus payment of up to $ 1,200 for eligible adults, plus up to $ 500 for dependents under the age of 17. However, at this point, many of the people who received cash stimulation under the CARES Act have exhausted those funds and are still struggling to pay for basic expenses like rent, food and medicine. It is for this reason that some lawmakers have been struggling to produce a second round of stimulus funding. But unfortunately, recent unemployment data could delay those efforts.
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Will Americans lose a second stimulus test?
In May, Democratic lawmakers introduced the HEROES Act, a $ 3 trillion relief measure that calls for a round of follow-up on stimulus payments. Under the HEROES Act, both adults and dependents are eligible to receive up to $ 1,200 in stimulus cash, up to a maximum of three children, or $ 6,000, per household. But while the HEROES Act made it to the House of Representatives, it is currently stagnant in the Senate and highly unlikely to pass, as Republicans have made it clear that it will not fly. In fact, Republican lawmakers have argued that Americans don’t need a second stimulus check, as the economy is, in fact, opening up and conditions should start to improve soon.
Unemployment data for May and June could easily fuel that argument, even though the numbers for both months remain exceptionally high. In February, before the pandemic got home, the unemployment rate in the US was only 3.5%. While we’ve seen some improvements since the April high, we are by no means out of the woods.
Additionally, COVID-19 cases are emerging in some parts of the country, and additional closures are already being implemented in several states. If the situation worsens, we could see an increase in unemployment as companies are forced to close their doors. As such, while it is easy for lawmakers to pinpoint improved unemployment numbers and use that data as fuel to delay or deny American relief, the reality is that there is still a need for a second stimulus check. President Trump declared in late June that he expects a “generous” aid package to arrive. Hopefully it really does put money in the pockets and bank accounts of those who need it most.
