INDIANAPOLIS (WISH) — New research from the Urban Institute says Americans need recurring stimulus checks until the pandemic is over, but a local economist and professor with the IU Kelley School of Business does not agree.
There’s still a hold up on the proposed idea of a $1,400 stimulus check. This would be the third round of direct payments from the government. Economics professor Kyle Anderson believes lawmakers on both sides of the aisle will back the current idea for another stimulus check, which will help the economy recover and continue to grow. He says to expect more is unlikely.
The research is from the Urban Institute, a research organization that carries out economic and social policy research. Results showed just one more $1,200 check, after the proposed $1,400 check, could keep 8 million Americans out of poverty. They also said two more checks could save 14 million from falling into poverty.
Anderson believes there are a few roadblocks in getting additional funding. First, he says he doesn’t know that there is the political will to get there. Second, he doesn’t know how much longer we’re going to be in the pandemic economy. Anderson says by summer there’s hope we’ll get the economic recovery and we could be out of that stage by September, which is when some of the unemployment benefits run out. At that point, Anderson says we may not need another round of payments.
“The best thing we can do for our economy is not give people money, it’s figuring out how to give shots in arms and so people can go back to their economic activity the way we were doing it in 2019,” Anderson said. “Once we get there, our economy will be pretty good.”
If the relief bill passes Congress, it must be signed by the president. After that, the IRS would distribute funds through direct deposit, mailed checks and prepaid debit cards.
The House could vote on the new stimulus package the first week of February.