- A Morning Consult report found that 22.6 million Americans will be able to pay their bills by mid-July with $ 1,400 stimulus checks.
- The report recommended lower income limits, higher payments for children and extended unemployment benefits to mitigate the risks that the pandemic could bring.
- The House’s Ways and Means Committee included unemployment benefits until August 29, which some Democratic lawmakers said was not enough.
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A $ 1,400 stimulus check by March 1 would help 22.6 million Americans pay their bills in full by mid-July without getting into debt, according to a report released by Morning Consult on Friday.
The Chamber’s Ways and Means Commission included $ 1,400 stimulus checks with a $ 75,000 income limit for individuals in its stimulus bill, and the Morning Consult report found that if those checks are delivered by March , many Americans will be able to avoid financial difficulties by mid-July.
In January, according to the report, some 30.2 million adults were unable to pay their bills, but after the $ 600 stimulus payments approved in December, there was an improvement of seven percentage points over the previous months in ability to pay.
“In other words, stimulus checks have not drastically changed the number of people unable to pay their bills, but have brought them closer to paying their bills,” the report said.
Financial distress was concentrated in low-income groups earning $ 50,000 or less a year, according to the report, with 16% of respondents in those income groups indicating that their expenses exceeded their income in January.
If widespread vaccination is achieved successfully by the end of June, economic activity is expected to accelerate in July and make government support less necessary, the report said. But, in case the vaccines are not being delivered at the proposed speed, here are the two main recommendations from Morning Consult to ensure that Americans do not lose the necessary help:
Lower income limits for stimulus payments and increase benefits for children
“Redirecting money sent to high-income families to low-income families or assisting small businesses would increase consumer spending and reduce further financial difficulties,” the report said.
This recommendation does not specify a limit for individuals, but it does affect the concerns of many Democratic lawmakers, as lowering the limit below $ 75,000 – which was the $ 600 payment limit – will eliminate many individuals from the necessary aid.
In addition, the report states that families with two parents spend 65% of their second stimulus checks, compared with 60% of non-parents spent, asking for the third wave of payment to increase the additional money that parents receive per child.
Extend unemployment benefits until September and implement automatic stabilizers
The Forms and Resources Committee included weekly extended unemployment benefits of $ 400 through August 29, which contrasted with President Joe Biden’s request to extend benefits until September. The report said that extending these benefits until September, along with automatic stabilizers – a budgetary resource that compensates for economic fluctuations – will help mitigate the risks that may arise from the ongoing pandemic challenges.
Senator Ron Wyden of Oregon said in a statement that he would struggle to get six months of unemployment insurance until September, as stimulus checks and unemployment benefits play a “critical role” in supporting families.
“We can do both,” said Wyden.