Economic experts remain divided on what the United States will do with the next round of coronavirus relief assistance, as well as the economic effects of the $1.9 trillion package.
The $1.9 billion stimulus plan of President Joe Biden will return to the House of Representatives for the final vote this week, before Biden’s iconic desk is reached shortly after.
On Saturday, Senate passed a stimulus bill for a $1.9 trillion package, a wall-down the version of Biden’s pledge: $1,400 stimulus checks will be sent directly to millions of Americans suffering from one year since the coronavirus pandemic breakout.
Talking soon after the Senate passed the coronavirus pandemic rescue bill for struggling Americans, Biden said he anticipates that Americans should begin receiving checks this month. The White House expects about 160 million families will benefit from these checks.
However, it remains to be seen if the $1,400 checks really boost the world’s largest economy as expected. Economists are divided on what Americans really will do for the next round of checks and on how, if any, they will depend on consumer demand for about two-thirds of US economic growth.
After the Senate’s changes, around 4,000,000 Americans who got improvement checks as a component of December’s $900bn boosts the round will not be seeing them this time, said Robert Scott- a senior financial specialist at the reformist inclining Economic Policy Institute.
The economists’ fundamental question is whether the bill will boost the economy by rousing Americans to get out and spend.
However, many economists answer this question by anticipating that checks have the most incredible effect on the economy when distributed to low-wage earners.
Higher-earning people, most of whom can migrate to remote jobs and have been less affected by the pandemic, are more likely to put their money in savings accounts rather than spend it.
Prisinzano estimates that 73 percent of beneficiaries, particularly “higher-income folks,” will save their checks or invest them in the stock market or pay extra on their mortgage.
Relief or stimulus: What’s your opinion either the relief checks will boost the economy or go in the stock markets & saving accounts?