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Equality
Economics

US Pandemic Checks Had No Lasting Impact on Poor, Study Shows

  • Cash boosted spending for 4 weeks, before returning to normal
  • Impact dissipates after a few weeks, researchers say
Food is distributed during a mobile food pantry in Immokalee, Florida.

Food is distributed during a mobile food pantry in Immokalee, Florida.

Photographer: Spencer Platt/Getty Images

The nearly $1 trillion in stimulus checks during the pandemic likely had no long-lasting impact on recipients’ financial well-being, and in some cases increased their feelings of distress around money, a study found.

Researchers surveyed more than 5,000 Americans living in poverty to find out how effective the unconditional cash transfers were. Recipients increased expenditures for a few weeks, but the extra money had no long-term impact on spending or savings, according to the paper, published Tuesday.