- author: Michael Wrubel
Second Stimulus Check and Second Stimulus Package Update: What You Need to Know
Welcome back to Michael in the Morning! Today, on November 8th, 2020, we have important updates regarding the second stimulus package and when we can expect to receive another stimulus check. In light of Joe Biden's victory in the presidential election and the unresolved status of Senate control, the chances of a stimulus bill passing before January and before the new president is inaugurated seem slim. However, let's dive into the updates and explore the current situation.
Impact of Joe Biden's Victory
President Donald Trump previously pledged to pass a large post-election stimulus bill. However, this was based on the assumption that he would win the election. With Joe Biden's victory now declared, President Trump might have little political incentive or capital to push for a stimulus bill through a divided congress.
Stance of Democrats and Republicans
Democratic and Republican lawmakers have already expressed opposing views about a stimulus package. Senate Majority Leader Mitch McConnell argued for a targeted stimulus relief bill based on the following unemployment numbers. On the other hand, House Speaker Nancy Pelosi rejected the idea of a targeted bill and insisted on passing a large comprehensive bill.
Call for Renewed Aid Talks
Despite their differences, both Democrats and Republicans have called for renewed aid talks. They aim to get a bill passed as soon as possible and avoid waiting until next year. However, Democrats potentially have an incentive to wait until next year due to two upcoming Senate runoff races in Georgia. The outcome of these races will determine who controls the Senate. If Democrats win both races, they will have more leeway to push ahead with their own plan.
Current Senate Control
Currently, the Senate is tied at 48-48 between Democrats and Republicans. If Republicans maintain their opposition and remain in control, any stimulus package proposed by Joe Biden could potentially be scaled down to around $500 billion. This is the highest amount proposed by Senate Republicans recently. However, if Democrats take control, Biden would have the opportunity to pass a much larger stimulus bill as they would control the House, the Senate, and the presidency.
Biden's Proposed Stimulus Relief Bill
Joe Biden has shown support for a large stimulus relief bill, which includes additional federal bonuses to weekly unemployment benefits, more aid for struggling businesses and states, and another round of $1200 stimulus checks. This aligns with the need to provide substantial support to individuals and different sectors impacted by the ongoing pandemic.
White House's Stance
White House economic adviser Larry Kudlow stated on Friday that the White House is not interested in a two or three-trillion-dollar package. Instead, they prefer a targeted package that focuses on specific areas. The aim is to avoid spending trillions of dollars while still effectively addressing the pressing economic needs.
Unemployment Rate and Economy
Recent updates on the unemployment rate indicate a drop from 7.9% in September to 6.9% in October. Lawmakers who oppose a large stimulus bill point to these numbers as evidence that the economy is improving and doesn't require extensive spending to reach pre-pandemic employment levels. They argue that we are already on the road to recovery.
Potential Economic Risks
While some lawmakers highlight the improving unemployment rate, it is crucial to consider the lack of new immediate stimulus aid being passed and the skyrocketing number of COVID-19 cases. Failing to provide additional support could endanger the U.S. economic recovery and leave the nation's healthcare system in a vulnerable position at the start of next year.
In conclusion, the future of the second stimulus package and another round of stimulus checks remains uncertain. The outcome of the Senate runoff races in Georgia will likely play a significant role in determining the size and scope of the final bill. Until then, we must wait and see how lawmakers negotiate and navigate these challenging circumstances. As always, stay informed, stay safe, and have a great day!
Note: This article is for informational purposes only and should not be considered financial or investment advice.