White House plan for Coronavirus stimulus package would involve a major cash payment to citizens.

Treasury Secretary Steven Mnuchin. LA Times.

A White House plan for a $1 trillion Coronavirus stimulus package would involve major cash payments to citizens. LA Times. The package would include money for the airline industry, small businesses and would send checks to Americans within two weeks. Details about the checks are scarce but Treasury Secretary Steven Mnunchin said that they will likely be larger than the $1000 checks that have been floated. Payments and loans would also be made to small businesses. It's unclear if the payments will be means based or with the same amount given to everyone. The effort to stop payroll taxes has been shelved for the moment. 

My Comment:

Details are sparse on this package and there is no guarantee that it will pass. I am guessing the small business bailouts and the checks for citizens would be popular among Democrats but I don't think they want to bailout Boeing and the airlines. Already people like Elizabeth Warren are saying that they won't support this without giving them everything they want, like a $15 minimum wage. 

I do think the idea of direct payments is a good one. With many people out of work and living paycheck to paycheck a quick infusion of cash will mean that they will be able to pay for necessities like food and rent. If the payment is more than $1000 they should have more than enough to survive for awhile, especially when combined with things like unemployment and paid leave, which will likely pass in the other stimulus bill. 

I don't know if that deal should be means tested or not. I don't really think it makes sense to pay people like me, since I am still working. I also don't think it makes sense to cut checks to millionaires either. On the other hand if you give it to everyone, including the millions of workers who are in the critical industries, you stimulate the economy as people will spend this money. 

And I think people will spend this money. People usually blow through windfall money if they are on the lower end of the income level. That might change slightly due to the fact that all the non-essential stores are closing but online shopping is still a thing. And people will spend this money on rent and food as well, so I think it will help things. 

Andrew Yang's supporters are trying to take credit for this idea but I don't think he deserves it. From what it sounds like it's going to be a one time payment, not a monthly one. Plus, we have given stimulus payments like this before, most notably in the Bush administration where everyone got a check due to the budget surplus. 

Given the unprecedented circumstances we are all under now I am glad that the government is at least trying to take care of people. This virus is changing everything and it sounds like the government will try and keep some semblance of normalcy.