Stimulus check update: how likely is a fourth payment in 2021? – Community News
Stimulus Check

Stimulus check update: how likely is a fourth payment in 2021?

Rthere are reports circulating online that a fourth stimulus check worth $15,000 will be approved before the end of this year, but no official confirmation has yet been received, either by the federal government or any state.

The federal unemployment bonus expired in early September, but millions of people are short of food and behind on their bills, and a fourth stimulus check would help.

Some states, including: California, have recognized the need for increased assistance and have made additional payments, with economic indicators showing that while broad sectors of the economy are recovering, there is still a persistent negative impact from the Covid-19 pandemic.

In March, a group of Democratic senators, including Ron Wyden from Oregon, Elizabeth Warren from Massachusetts and Bernie Sanders of Vermont, sent a letter to President Joe Biden requesting “recurring out-of-pocket payments and automatic unemployment insurance renewals linked to economic conditions.”

Other signatories included Alexandria Ocasio-Cortez of New York, Rashida Tlaib of Michigan and Ilhan Omar of Minnesota, with the latter calling for a stimulus payment of $2,000 per month until the end of the pandemic.

A May 17 letter from members of the House Ways and Means Committee renewed the drive for additional incentives.

“The ARP’s $1,400 checks alone will lift 11 million people out of poverty this year, with the expansion of unemployment insurance and other provisions in the bill accounting for another five million, according to the letter.

A fourth and fifth check could keep an additional 12 million out of poverty. Combined with the effects of the ARP, direct payments could reduce the number of people living in poverty from 44 million to 16 million by 2021, it says.

A majority of Americans are also in favor of recurring aid payments. According to a Data for Progress poll conducted at the beginning of the year, nearly two-thirds of respondents supported monthly payments of $2,000 to all Americans for the duration of the pandemic.

Supporters were a majority of Independents and Republicans.

However, there are green shoots that can be used as an argument against a fourth stimulus payment.

Of vaccination numbers are rising, the country’s economy continues to recover. Easing restrictions have helped businesses, and jobs are available in many sectors. Many industries are even complaining about staff shortages, leading to wage increases.

consumer spending drives two-thirds of the country’s economy. And excess pandemic savings, along with three stimulus measures, have increased people’s purchasing power. That purchasing power has increased even more since the monthly payment of child tax credits began on July 15.

Employment recovering, but still below pre-pandemic levels

The unemployment rate fell to 4.6% in October, with some workers finding jobs or leaving the workforce, but job growth exceeded expectations for the first time in a few months.

The economy added about 530,000 jobs in October, above forecasts of 450,000, well above the 194,000 new jobs added in September.

In the week ending October 16, nearly 2.7 million Americans received some form of unemployment aid.

About half of all U.S. states began trying to get people back into the workforce, with mostly Republican-led states ceasing $300 federal unemployment benefits before Labor Day.

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