By CultureBanx Team
- A fourth stimulus check is unlikely as the economic damage from the pandemic eases
- Spending on credit and debit cards for stimulus recipients grew by 12.7% compared to the 2.8% for non-recipients
The message being delivered by the Biden administration around a fourth stimulus bill and the possibility of another check for American’s, well that depends on Congress. More than 164 million stimulus payments of $1,400 have been sent out since President Biden signed the $1.9 trillion American Rescue Plan in March. As people continue getting vaccinated and offices are reopening, the economic damage from the pandemic is easing, which most likely means there won’t be another check coming your way.
Why This Matters: If there’s any doubt about whether Americans should get stimulus checks, consider the powerful impact they have on families, communities and the economy. In fact, stimulus-related spending in households with incomes less than $50,000 increased at 22% year-over-year (YOY), versus 11% for low-income households who had no additional funding, according to a new report from Bank of America Global Research.
Another stimulus check could help buoy members of the Black community as the economy and job market stabilize. Right now the national unemployment rate is 6.1%. However, in the Black community the unemployment rate 9.7%, higher than any other ethnic demographic.
At least 50 Democrats in the House of Representatives have similarly called for further, or ongoing, stimulus checks during the pandemic. Nearly two-thirds of Americans are on board with the recurring checks proposal, according to a January poll from Data for Progress. However, the current American Jobs and Infrastructure bill includes funding for different projects all over the country, which will create work and benefit local communities, just not individual stimulus checks.
Situational Awareness: If for some reason the final bill does include a stimulus check, you may need to protect it, as debt collectors could take some of your funds. The previous $1.9 trillion stimulus bill allowed private debt collectors armed with a court order to take some or all of the pandemic relief funds and put it toward whatever you owe them. Clearly, this oversight in the bill is extremely problematic for African American and LatinX citizens that have large consumer debt burdens and owe $8,554 and $4,148 respectively. Another round of stimulus checks can only help, not hurt Americans as many people are still in crisis mode and financially stressed.
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