A third stimulus check may be on its way. Here’s what the Americans did with the others
A third stimulus check may be on its way.  Here’s what the Americans did with the others

A third stimulus check may be on its way. Here’s what the Americans did with the others

Lawmakers this week will vote on President Joe Biden’s COVID-19 relief package.

For millions of Americans like 27-year-old Edvonte Copeland, stimulus check from the federal government has provided an economic lifeline.

As a special education assistant and assistant athletic director at a high school in Minneapolis, Copeland’s work became unpredictable as the pandemic forced classrooms to become virtual.

When the latest $ 600 check arrived in the mail, Copeland immediately used it to pay his bills.

“When I’m not working, I’m not able to do anything, but the bills are still coming,” he said.

In an effort to boost a pandemic-fueled economy, the federal government sent out two rounds of direct stimulus checks to many Americans: $ 1,200 last spring and $ 600 at the end of last year for people earning up to $ 75,000 and married couples earning up to $ 150,000.

House lawmakers are due to vote on President Joe Bidens on Friday $ 1.9 trillion COVID-19 relief packagewhich includes an additional $ 1,400 stimulus checks.

Data from the U.S. Census Bureau showed that many Americans, especially in lower-income households, used their checks the same way Copeland did: to pay for daily things like groceries, gas, and supplies.

“The December stimulus quickly proved to be powerful,” economists at Bank of America Global Research wrote in a research note.

While many struggling Americans have used their checks to make ends meet, retail sales also rose unexpectedly in January, after some Americans spent their money on furniture, appliances or clothing. Research also shows that others have saved the money or used it to repay debt.

Elena Panyard graduated from Central Michigan University three years ago and put both of her stimulus checks on her student loans.

“I used to dream of someone just throwing a thousand dollars in my lap so I could pay my loans off because it’s so stressful,” she said.

Census Bureau data showed that households with incomes between $ 75.00 and $ 99,999 were more likely to use their initial stimulus payments to pay off debt or add it to savings compared to households in general.

Researchers based at Harvard University It is estimated that households earning over $ 78,000 spent only $ 45 of the last $ 600 checks a month after receiving them.

Some economists argue that it defeats the purpose of the controls to stimulate the economy, saying the money should be more targeted at those in need.

“If the goal is to help households that are really suffering, households that earn a six-figure income and who have kept their jobs through this experience are pretty low on the list of households that are suffering,” says Michael Strain, director of economic political studies at the American Enterprise Institute.

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