Thursday, Treasury Secretary Mnuchin told reporters that the White House is seriously considering another round of C-19 coronavirus stimulus checks for Americans.
“We’re going to seriously consider whether we need to do more direct payments worked very well,” Secretary Mnuchin told reporters.
President Trump expressed support for more stimulus and potentially a 2nd round of checks Wednesday. At the Thursday morning briefing, President Trump said his Administration has started working on the next phase of stimulus.
Under the CARES Act enacted in March, the government sent $270-B in stimulus checks as of 31 May to over 160-M Americans. Each payment is up to $1,200 per qualifying adult, plus a $500 bonus for children under 17.
The act also added an extra $600/wk in unemployment benefits that is set to expire at the end of July.
Secretary Mnuchin added that a 2nd round of stimulus payments would be sent only to “legal Americans”.
“Our position is that legal Americans, American citizens should get the payments. That is our focus,” he said. “If people are here illegally, they are not going to get economic payments”
“Yes, a second round of stimulus checks are badly needed for many Americans are barely squeaking by, with only the ability to buy basic food and make utility payments.
“Further, like the 1st Round, it would have a very positive effect on our economic recovery because a high percentage of the money received will be spent quickly in consumer related industries such as food where there is a highly integrated employment structure, from the growing of vegetables at the farmers’ level to meats and poultry, from canning and packaging to ultimately retail and consumption.
“Unemployment and empty stomachs produce social unrest and that is exactly what America does not need now. It would also add small business recovery, the backbone of our economy which will caused workers to be rehired, generating payroll tax dollars.
“Little of the stimulus results in long time savings since it Americans are spenders.
“However, unlike the 1st round of stimulus, a 2nd round should not include Washington pork-barreling – pet spending projects by politicians in areas which in reality do little to help grass-roots Americans, budget supplements to States with wasteful spending plus in fine arts (museums and social events such as orchestras – the Kennedy Center nor to well endowed universities, like Harvard, Yale, Stamford, and others” said economist Bruce WD Barren.
Note: Mr. Barren is a editorial contributor to Live Trading News.
Have a Happy Star Spangled Weekend, Keep the Faith!