The latest stimulus comes with a price tag of $1.9 trillion, adding to the $4 trillion authorized last year. The final bill is a “mixed bag,” with numerous provisions crucial to sustaining the recovery but others less essential. Such is inevitably the case when anything of significance grinds its way through the Congressional sausage-maker. Make no mistake, however, a substantial package was indeed necessary.
Many Americans will be receiving $1,400 checks, with the first payments beginning to arrive. An extra $300 weekly in unemployment for a year, an expansion of the child tax credit, and other payments will also bring funds to many households. Money will go to schools, state and local governments, and vaccination programs. Certain pensions are among the beneficiaries. In addition, there are subsidies for buying health insurance under the Affordable Care Act and to certain states that opt to expand coverage. There are provisions to help small enterprises, key sectors, and other elements of the economy.
These outlays and others are generally aimed at partially relieving the financial stresses many families are facing, which in all too many cases have become both extreme and enduring. In normal times, about 70% of the US economy is driven by consumer spending; pumping money into the spending stream will enhance overall growth. Other stressed entities are also supported, decreasing the chances of future meltdowns.
