"So long as Americans are spending the money, that helps stimulate and support the economy. Although saving money is good, saving money actually doesn’t do much in the short run to help the economy. In the long run, maybe it helps by creating more financially secure people to not become a burden," Dogen from the Financial Samurai told us.
"I believe everything is rational. If people want to use their money to spend on TVs and other things, its because they’ve got their basics already taken care of. Here’s how millionaires are spending their checks."
Dogen believes that 1,200 dollars per person should help individuals for at least a month. "If you add on the extra 600 dollars a month in unemployment benefits, that’s a decent amount of money," he said.
"For example, in California, you can get 4,200 dollars a month in unemployment benefits now. And then if you add on another 1,200, that’s 5,600 dollars. It’s really the added unemployment benefits that will really help those who have lost their jobs," Dogen pointed out.
The BBC reports that President Donald Trump’s name will be printed on the paper checks that will be sent out to financially-struggling Americans. This is the very first time that a US president’s name will show up on a federal government handout.
Not surprisingly, some are worried that this decision might delay checks arriving. The president denied that there will be a delay, as did the Treasury Department. However, two senior IRS officials told the Washington Post that the first batch of checks might arrive slower because of this.
"You are getting your money late because the President thinks it is more important that his name be on the cheque than that you are able to pay your bills on time," Democratic Senator Brian Schatz shared his opinion on Twitter.
The stimulus checks are part of a 2 trillion (that’s right, trillion) dollar relief package that will help out more than 80 million US citizens. And Americans need it now more than ever. Around 16 million people lost their jobs in the US just in the past month and the situation may get worse before it gets better.
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