By Aman Jain. Originally published at ValueWalk.
We have already seen several polls that favor another round of stimulus checks. It is also known that President Donald Trump and Democrats support giving direct payments to Americans as well. Now, the call for coronavirus stimulus checks has come from more than 150 top economists.
Q2 2020 hedge fund letters, conferences and more
Economists urge recurring coronavirus stimulus checks
A couple of days ago, a group of 156 economists requested that the federal government sanction more stimulus checks for Americans. The economists argued that direct payments will not only boost the economic activity, but will support cash-strapped households as well. Further, they also said that a lack of cash could drop the level of consumer spending, which accounts for about two-thirds of GDP.
“Direct cash payments are an essential tool that will boost economic security, drive consumer spending, hasten the recovery, and promote certainty at all levels of government and the economy – for as long as necessary,” the economists wrote in an open letter.
Economists did not call for one-time coronavirus stimulus checks, rather recurring checks until the economy fully recovers from the coronavirus pandemic. The economists note that the amount of the recurring coronavirus stimulus checks could be raised or cut depending upon the current economic situation.
This letter was published by the Economic Security Project, which promotes universal basic income, and the Justice Collaborative, a policy organization. Some of the prominent signatories of the letter include former Federal Reserve economist Claudia Sahm and Jason Furman, a former senior economic adviser to President Barack Obama.
Andrew Yang, former Democratic presidential candidate, supported the proposal of recurring coronavirus stimulus checks. “Yes – Congress please listen to 156 economists that recurring stimulus checks are necessary right now,” Yang said in a tweet.
In the letter, the economists also urged the federal government to extend the unemployment benefits and raise the money for state and local governments. The $600 federal unemployment benefits are set to expire later this month.
Another stimulus check: more likely now
This letter from the economists urging recurring coronavirus stimulus checks comes at a crucial time. Congressional lawmakers are currently debating the need of another round of stimulus checks. This letter will certainly give advocates of direct payments one more point to back their arguments.
President Donald Trump has long been in favor of another round of coronavirus stimulus checks. On Tuesday, Trump told Nexstar Media Group’s Washington correspondent Jessi Turnure that the next stimulus check could arrive “soon.” Previously, Trump said that the next stimulus would be “generous” and “larger.”
Earlier this week, Senate Majority Leader Mitch McConnell also noted that they are considering another round of direct payments. McConnell also noted that the pandemic has hit hard those earning $40,000 or less annually. McConnell’s remarks triggered speculations that the next stimulus checks could be targeted at those earning $40,000 or less.
Any decision on the next round of coronavirus stimulus is likely to arrive later this month. Congress is currently away for a two-week recess and will reconvene on July 20.
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