The explosion of COVID-19 has claimed tens of thousands of lives and affected many more in one way or another. In an effort to slow the spread of the disease, states have issued social quarantine orders, often shutting down brick-and-mortar businesses. In areas where businesses remain open, many people are opting to stay home.
Moreover, the Dow Jones Industrial Average and S&P 500 Index have both fallen almost 30% since February, but have rallied in recent weeks and made up for some of the losses. Layoffs have spiked, with about 50% of US companies considering weaning out their workforce. By the week of March 28, 6.6 million Americans filed for unemployment.
To bolster the economy and aid the financially insecure, the federal government has begun to dispatch stimulus checks of up to $1,200 to millions of Americans. Tax filers whose adjusted gross incomes total up to $75,000 are eligible for full checks, assuming they have social security numbers. Although these checks are a good start to protecting the economy, they will hardly assist those hurt by this economic downturn.
Many Americans believe the stimulus checks will barely help their financial situations. According to research from retirement income company Simply Wise, at least 63% of interviewees said they would need another check within the next three weeks. Of those polled, 53% reported they would spend the money on basic necessities and 17% would use it for late payments on mortgages and loans. The stark reality is that most people will need the checks for essential supplies and debt.
Even if the federal government’s stimulus relief were to be enough for people, many won’t receive the checks. The feds determine who is eligible for the stimulus relief through tax returns, and a social security number is required to receive the money. That means undocumented immigrants and others without a social security number will receive nothing.
Adult independents who are high earners (incomes exceeding $99,000), are ineligible for the checks. Many college students will be ineligible as well. If you’re 19 to 23, claimed on your parents’ tax returns with more than half of your expenses covered by parents, you won’t receive checks. This same dismal outcome applies to adults with disabilities claimed as dependents on tax returns. In sum, many many Americans won’t be receiving their needed checks.
The national government’s stimulus checks will have little effect on many Americans who are or will soon be financially insecure. Many undocumented immigrants, university students and disabled people will likely not see those checks. And for those who are eligible for the checks, many won’t be able to afford basic necessities for the weeks or months of quarantine ahead of us.
