Republicans and Democrats have announced this Sunday that they have signed off the final details of a joint bipartisan deal. According to this deal, they will offer a stimulus package of $900B to the government for a year.
The stimulus package will be given to the government in two stimulus checks of $600B and $300B for the out of work Americans.
The originally scheduled time for the COVID 19 stimulus was Sunday, but the scheduled time of vote was shifted to Monday due to the Representatives’ house.
What Is A Stimulus Package?
The idea behind the stimulus packages is to have tax rebates to influence the activity of the economy. This boost in inactivity will increase demand and spending. As a result, it will create new employment opportunities. This cycle continues till the economy reaches a stable position.
The stimulus package that you can see today is not the first time for the USA. They offered a stimulus package back in 2008 as well when the global economy was on its last leg.
What Might Be The Result For The First Stimulus Package Check?
This Covid 19 stimulus package is expected to provide critical relief to the people suffering from both COVID 19 inflation and unemployment. This stimulus package aims to offer benefits to the Americans who are being pressured by the current situation.
This bill might be the initial step towards providing real relief to the Americans. Seeing how people are optimistic about the stimulus package, we expect the first check to be passed on Monday.
The second stimulus check might also go to the same recipients of the first stimulus package. However, the time is not yet confirmed. The time may decide after seeing the economy.
There can even be a broader stimulus package of $2.2 trillion CARES act in march. We are expecting this to return back on the same table in 2021. We are still in 2020, so it is too soon to confirm that a third package will come to the Americans in the form of $600 to $1200.
Why Is The $1200 Stimulus Package Not The Second Part Of The Bill?
The CARES act has always supported a second stimulus check. It has several months since the act has been passed, and everyone, including Trump, Biden, and other members, has advocated for direct payments.
Last week, Trump talked about this stimulus package, commenting that the government is talking about more money than they can produce. According to him, a sum of $1200 can jeopardize the whole stimulus package.
Although we have seen that most of the people are favoring a direct aid of $1200, with a small second stimulus package, the government can limit their total cost below $1 trillion.
Stimulus checks are not as cheap as it may seem. According to the IRS, they have spent more than $270B for sending out 160 million checks. This can even surpass $300B for sending out the second stimulus package checks of $1,200 per person.
There have many factors considered while talking about the second stimulus check. The pillar factor has the cost of sensing the check.
From Where Did A $900B Stimulus Package Come From?
The $900B stimulus package has a new variation of the old $908B proposals proposed on first December. This Monday, this proposal was split into two, dividing the $900B into $600B and $300B.
The first corvette part of the bill is $600B, which will focus on the unemployment funding. While the second half will focus on the contentious issues:
- Money for the states.
- Local and Tribal funding.
- Liability shield to protect the businesses.
- COVID 19 related lawsuits.
Neither of the two parts of the stimulus package talked about any second stimulus. However, with the interventions, Republican and Democratic negotiators have brought this issue on the plate.
What Is The Lead Time Requirement For The Stimulus Package?
Before talking about the lead time requirement, we must talk about passing the bill. The bill first needs to be passed through the Senate and House. Once the bill passed through, the next step is to be signed by the president. Now that the president has signed the bill, the aid will most likely be initiated within a couple of weeks.
Can We Expect A New Stimulus Bill In 2021?
Biden, the newly elected president, talked about the current stimulus bill to be the necessary measures to control America’s failing economy. That means we can expect more stimulus bills in 2021.
That’s it for the stimulus package. Stimulus packages seem to be a great help for the USA to uplift their falling economy. Though there have not any talks about the bill’s third stimulus, Biden has talked about the current bill to be a down payment for 2021. With his testament, we can expect a third stimulus package.