Economics
Biden’s Stimulus Risks Giving Money to People Who Won’t Spend It
- Studies show lower income households spend assistance faster
- Checks are part of Biden’s $1.9 trillion Covid-19 relief plan
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President Joe Biden faces an economic dilemma as his $1.9 trillion stimulus plan runs into congressional opposition: keep his promise to deliver $2,000 payments to help a battered economy, or target funds to jobless and low-income Americans.
Biden said this week he’s open to discussing more-targeted payments after some key Republicans and Democrats raised concerns that funds may go to people who don’t need them. Households in greater need are much more likely to spend the money immediately, giving the economy a quicker boost than if the payments were used to boost savings or pay down debt.