New Stimulus Approved and What That Means For You

Stimulus+checks+are+being+distributed+to+those+in+need+during+the+pandemic+-+Photo+provided+by+Creative+Commons.

Stimulus checks are being distributed to those in need during the pandemic – Photo provided by Creative Commons.

Written by Ryan Wilkinson and David Hamady

President Joe Biden has approved a $1.9 trillion COVID-19 stimulus package that will be spread across the country to provide relief to those in need. 

The focal point of this new stimulus is a $1,400 check for individuals, with Biden stating that 85% percent of households in America will receive aid. The checks, aimed at relieving some financial pressure from middle and working-class households, also provide an extra $500 credit per child depending on the previous year’s tax return. To qualify for the full stimulus, individuals must have made under $50,000 during the previous tax year or filed jointly while making under $78,000,* as well as not having been claimed as a dependent. In addition to payments made directly to individuals, additional money has been allocated to unemployment in the form of weekly payments of $400.

The IRS as well as the Treasury have sent roughly 150 million stimulus checks so far. This was one of Biden’s goals, as he stated that he would deliver at least 164 million stimulus checks in his first 100 days as president. Upon completion of this goal, it has been 77 days since Biden’s inauguration. “We need more action, and we need to move fast. We’re in a national emergency, so we’ve got to move with everything we’ve got,” said Biden when describing the need for these stimulus checks. 

Although many perceive these checks as highly beneficial, there are some that believe the cons outweigh the pros. Some experts are entertaining the thought that this stimulus bill could have major implications on the economy. “My opinion is that the [$1.9 trillion stimulus bill] will risk government debt overwhelming the private savings, create inflation, and lead to high real interest rates. And that’s a very dangerous situation to get into,” said Pete Kyle, the Chair Professor of Finance at the University of Maryland’s Robert H. Smith School of Business.

The current state of the economy honestly affects me in only a few ways. When gas prices fluctuate, it impacts me. I only work in the summer, so it affects me more than since I buy gas more often,” said senior Rowan Hanes when asked about how the current state of the economy affects him. Many seniors looking for summer jobs are likely to have their prospects severely reduced due to the current state of the unemployment rate in the U.S.

With many losing their jobs and others having a hard time supporting themselves and their families, these stimulus checks are still vital to those in need during this pandemic. “I think it’s a blessing to millions of Americans who are still struggling mightily. More money would be nice, for sure. But something is better than nothing,” said personal finance teacher Jeff Schutte.