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More direct payments to Americans seemed like a lock a couple of months ago.
But then we got into serious negotiations in the month of July and August and all of a sudden they are not a guarantee anymore.
Even though it is not clear that we will see more checks, there are some factors, such as the impact on the economy, that might spur lawmakers to send out more funds before it gets too late.
Some experts believe that if stimulus checks do not go out by the end of next month, the economy will come to a virtual standstill.
“If the economy has to wait until the end of September, it will come to a virtual standstill between now and then, and (be) vulnerable to anything else that goes wrong,” Moody’s Analytics’ Chief Economist Mark Zandi told Bloomberg.
“And given that we are in the middle of a pandemic, there is a lot that can go wrong.”
Some lawmakers have seemingly recognized the importance of timely getting stimulus funds to Americans right now.
Speaker of the House Nancy Pelosi said, “The American people are desperately counting on us to meet their needs. Lives, livelihoods, and the life of our democracy are threatened by Republicans’ opposition of inaction.”
But despite the words we hear, we still have not seen lawmakers come together to finalize a bill that would send out more stimulus checks.
And I think both parties are to blame here.
Democrat leaders have clung to a wish list that contained several items not directly related to stimulating the economy. This led to an inflated stimulus proposal close to $3.5 trillion which had zero chance of passing in the Republican controlled Senate.
Republicans have also made things difficult by not being on board with a stimulus package to begin with.
There are still many Republicans who oppose any type of additional aid. This has made it more difficult to get Republicans on board with a package that meets more than only the minimum GOP standards. It’s also one reason why I believe the GOP has been reluctant to meet Democrats halfway at a package valued at around $2 trillion.
Initially, the White House sent out mixed signals regarding more checks but they have been pretty on board for a while now so and have publicly stated they would be willing to send out more checks once an agreement is made.
White House chief of staff Mark Meadows stated earlier that President Trump was willing to sign a deal. “Let’s go ahead and get a stimulus check out to Americans. Let’s make sure that small businesses are protected..and put the postal funding in there. We’ll pass it tomorrow. The president will sign it.”
Congress is now on recess until after Labor Day which is September 7.
It’s possible that a deal could be worked out before then but I am not too optimistic about that happening.
If lawmakers are listening to the experts who claim that stimulus checks will be crucial to keeping the economy moving by the end of next month, hopefully they will be more inclined to arrive at a deal quickly in September.
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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. Since 2014, 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.