Americans might receive a $1,000 or more check in the coming weeks as political leaders unite around a daring proposal to avert a deeper recession and keep households from going bankrupt.
Sen. Mitt Romney (R-Utah) proposed on Monday that every American adult receive a $1,000 payment “immediately” to help tide them over until further government aid can come.
By Tuesday, the concept had received bipartisan backing, even from President Trump. The White House even hinted that the amount may exceed $1,000, indicating how serious the economic situation has become.
This is not a novel concept. This has happened twice previously in the history of the United States. During the Great Recession, the federal government delivered a $300 to $600 check to each adult (plus $300 for each kid). Similarly, in 2001, the majority of Citizens obtained a $300 check.
“We’re looking at issuing cheques to Americans right away,” Treasury Secretary Steven Mnuchin said, saying that Trump wants the checks to be sent “within the next two weeks.”
During the previous recession, checks were distributed to almost everyone who wasn’t a billionaire and had filed a U.S. tax return, including Social Security beneficiaries. Americans receiving at least some income but less than $75,000 received the whole amount, while those earning more received less. The payments were made by cheque or direct deposit into a savings account.
Most economists across the political spectrum like this proposal since it is simple and quick. People do not have to apply for the payments, unlike other forms of government assistance such as unemployment insurance, welfare, or food stamps, and there are no limitations on how the money may be used.
As the U.S. economy grinds to a halt, analysts predict that job losses will number in the millions. A $1,000 payment would not entirely recompense individuals, but experts and lawmakers agree it is a decent starting step toward assisting people in purchasing groceries and paying rent.
According to the most recent Labor Department data, it equates to one week’s wages for the average American, with median weekly earnings of $936 for full-time employees.
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