Just Send the Bigger Checks Already
Stimulus payments of $2,000 will be a big boost to those that need it, and won't do any harm to the economy. Most of all, it's politically savvy.
Senate Majority Leader Mitch McConnell blocked a vote on a proposal for $2,000 stimulus checks, but it’s not dead yet.
Photographer: Bloomberg
Let's get down to brass tacks: Sending $2,000 in direct payments to Americans is a politically effective but economically inefficient way to provide needed relief to workers and families.
When Congress recently approved a new stimulus package, it included $600 cash payments to Americans. But that struck many people as a measly gesture compared to the $1,200 checks issued in the previous stimulus, and considering the economic damage done by the pandemic over the nine months since the Cares Act. So when President Donald Trump called for $2,000 checks, Democrats immediately jumped on board and some Republicans followed.
The new $2,000 amount was approved in the House on Monday, though a vote in the Senate today was blocked by Majority Leader Mitch McConnell. The proposal is still very much alive, garnering support from both GOP Senate incumbents David Perdue and Kelly Loeffler, who face a runoff election on Jan. 5 in Georgia. Given the controversy, it's worth asking how much the larger amount will actually help the economy.