Next week is going to be a super important week when it comes to the next stimulus package and more potential stimulus checks.
In May, unemployment reports showed that the country gained 2.5 million jobs.
And according to Fox, if that trend continues, some analysts feel lawmakers may be less likely to pass a second round of stimulus checks as the economy recovers.
Certain lawmakers seem 100% on board with more stimulus checks, especially Democrats.
“Without a doubt, we owe it to the American people,” Democratic Illinois Congressman Jesus Garcia stated. “The high unemployment rates across the country argue for at least one more stimulus check and an extension of unemployment insurance benefits.”
“Our states, our local governments need the support. They’ve lost twenty percent or more of revenue,” added Democratic Congressman Jim Costa of California.
“We have spikes increasing in COVID-19 in many states across the country, including California. We need to provide the resources and the support in terms of the stimulus package because we’re not out of the woods yet.”
And we’ve even recently heard support from Republican senators which has been the big missing link all along.
Personally, I think the second round of checks is still going to happen even if the unemployment numbers don’t look disastrous for June.
The spikes in cases across the west and south are simply too significant and too many millions of Americans will be affected by travel restrictions and temporary shut downs of restaurants, bars, etc.
The bigger question to me is what it’s going to happen to the expanded unemployment benefits?
There have been legitimate worries that the unemployment benefits were too good and incentivized people to not return to work.
The problem is those benefits are set to expire next month which also coincides with the rise of the second wave of coronavirus. A wave that is even bigger than the first.
So we will likely see more shut downs happening as unemployment benefits are expiring.
It will be difficult to try to incentivize people to get back to work when conditions are even worse than they were when they left.
So while I think the stimulus checks are on track for disbursements coming in August and September, I think things are much more muddled when it comes to unemployment benefits.
Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. His content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.