More than 2.3 million Americans received a $1,400 stimulus check as part of the third round of government financial aid last month. This brings the total amount to $3,200 for each eligible American adult, which some say is simply not enough given the economic situation.
Lawmakers have been pushing for the release of a fourth stimulus check, which would be given as recurring payments until the pandemic ends. So far, eligible Americans have received $1,200 under the Coronavirus Aid Relief and Economic Security Act in March last year, $600 in December, and another $1,400 under the American Rescue Plan signed by President Joe Biden.
Despite the assistance, millions are still in financial distress. According to a survey conducted by TransUnion, 4 in 10 people in the country still have incomes that are well below pre-pandemic levels. About 1 in 4 households said that they are now unable to pay for basic needs such as food and rent.
Apart from stimulus checks, the government is providing other assistance, including aid to more than 14.6 million unemployed workers. As of today, the unemployment rate in the U.S. stands at 5.9% – far higher than the 3.5% recorded before the pandemic began.
Analysts said that while the need is apparent, it is unlikely that the government would release another round of stimulus checks. Wall Street analysts said the Biden administration is still focused on advancing its $2 trillion infrastructure plan, which would see the rebuilding of schools, roads, and airports as well as expanding the country’s internet infrastructure.
Analysts said a fourth stimulus check under a new relief plan would be a tough sell. The current proposal wants to fund the relief checks through an increase in the corporate tax rate from 21% to 28% – a move that will likely be opposed by Republicans and some Democrats.
Even if it is approved, 1 in 3 Americans believes that additional stimulus checks would likely not help their situation a lot. A poll conducted by Politico-Harvard showed that most households would need to receive more than just a $1,400 stimulus check to help get through the extended COVID-19 crisis.
