Americans could get a check for $1,000 or more in the company weeks as the government works on a plan to prevent a recession and protect people from going bankrupt.
On Monday, Sen. Mitt Romney (R-Utah) called for every American adult to receive a $1,000 check “immediately” to help people until another government aid can arrive. By Tuesday, the proposal got bipartisan support, including from President Trump.
The White House suggested that the amount could be even over $1,000, an acknowledgment of how big the current situation and economic crisis are becoming.
“We’re looking at sending checks to Americans immediately,” Treasury Secretary Steven Mnuchin said, adding that Trump wants them to go out as soon as “in the next two weeks.”
“We're going to do something that gets money to them as quickly as possible,” Trump added.
if every american gets $1000 and buys $btc, they can send it to 23k
this is so bullish for crypto it hurts 🚀
— red (@redxbt) March 17, 2020
But still won’t avoid recession?
Giving of money isn’t unprecedented as the US has done this before twice. During the Great Recession, the fed sent every adult a $300 to $600 check plus $300 per child. Then in 2001, the same thing happened when the majority of Americans received a $300 check.
During the last recession, checks went out to about everyone who wasn’t a millionaire and filed a US tax return. Those with less than $75,000 income, for the full amount, while the wealthier people got less.
A good first step according to many as it is simple and relatively fast, however, Andrew Levin, a former special adviser to the Federal Reserve said, “I don't see how we're going to avoid having a recession.”
This time, the coronavirus check proposal would be a direct cash payment. Mnuchin said Tuesday that millionaires would not be getting the checks.
Multiple rounds of money needed
As per the Democratic proposal from Rep. Tim Ryan (D-Ohio) and Ro Khanna (D. Calif.), those making $65,000 would receive at least $1,000, for which 75 percent of Americans would qualify.
Another Democratic plan from Sherrod Brown of Ohio, Cory Booker of New Jersey, and Sens. Michael F. Bennet of Colorado goes further with $2,000 for every American adult plus $1,500 per child in the summer and a $1,000 check in the fall if the emergency continues.
“We will need multiple rounds of money for everyone,” said Claudia Sahm, a former Federal Reserve economist. One of the leading experts on recessions, Sahms forecast a deeper recession than that of 2007-2009 but might not last long if policymakers act boldly. “This recession is going to be more severe than the Great Recession,” she said.