Friday, December 18, 2020

The Stimulus Package Is Out for Delivery

 

ECONOMY

The Stimulus Package Is Out for Delivery

Francis Scialabba

Yesterday’s news felt like that moment where you think you spot someone who looks exactly like a celebrity. But, was Sophie Turner actually browsing for produce at Safeway?

Sophie Turner = a second stimulus package. After about half-a-year of playing chicken, U.S. lawmakers appear to be on the precipice of a follow-up to the CARES Act. 

What’s in the most delayed sequel since Top Gun: Maverick

According to reports, the proposal totals about $900 billion and includes funding for: 

  • Another round of direct payment checks of about $600–$700 for people earning under a certain income threshold 
  • Continuation of the Paycheck Protection Program for small businesses (we wrote about this yesterday)
  • Supplemental federal unemployment benefits 
  • Vaccine distribution and schools 

What’s reportedly not in the current plan: aid for states and local governments and liability protection for businesses. Democrats wanted the former, while Republicans pushed for the latter. In a classic D.C. compromise, they dropped both. 

Reality check: The help can’t come soon enough. A recent report found that about 8 million Americans have fallen into poverty since the summer. Plus, the pandemic is resurgent in many areas, compounding the economic crisis, and several aid programs will expire at the end of the year. 

  • Also...the government will run out of money at midnight on Friday without a spending bill. 

Fed Chair Jerome Powell is trying to do his part to juice the economy. At the conclusion of the Fed's two-day meeting, the central bank said it will keep interest rates near zero and keep buying bonds until the U.S. reaches full employment and inflation settles at 2%. 

Looking ahead...the House could vote on the stimulus bill today, followed by the Senate tomorrow if all of its members are on board. But if there are any snags, votes could spill into the weekend. 

        

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