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  • Writer's pictureAnnie Ianko

Will The Stimulus Package Affect Future Economic Situations?

On Friday, March 27, President Donald Trump signed a $2 trillion stimulus package in hopes of keeping the economy thriving during the COVID-19 crisis. This package, also called the Coronavirus Aid, Relief, and Economic Security Act (CARES), was designed to help those who will economically struggle due to job loss as well as help businesses impacted by the income loss during this time.

Facts About The Stimulus

Most American taxpayers will receive payment from the stimulus. To qualify, the adjusted gross income from your most recent tax return has to be under $75,000 to get the full amount. Single filing status will get $1200, and married joint filings will receive $2400. There is also an additional $500 per dependant claimed on the return. It is estimated that 90% of Americans should be eligible for some kind of payment from the stimulus.

Lawmakers agree to expand unemployment benefits by 13 weeks with an additional four-month enhancement of those benefits. This is an additional $600 per week on top of the state allotment. A record of 3.3 million individuals have applied for unemployment benefits already. This could be in part to the freelancer and gig workers who are now allowed to apply that have been denied in the past.

Emergency loans for small businesses were factored into the amount for the stimulus. Various programs are being offered through the Small Business Administration, which includes things like advance loans to pay for payroll and other business expenses. Larger companies like airlines and hotel chains are expected to receive some relief from the strain the virus is causing.

Hospitals and other healthcare systems have begun to drown in the pandemic. The package is allocating $100 billion specifically to hospitals and healthcare systems seeking relief across the United States. Medicare payments these providers receive will also be higher.

Can Too Much Of A Good Thing Be Bad?

There are two sides of the fence when it comes to worrying about what the stimulus package could do to the economy in the long run. Could Social Security Benefits in the future be cut down? Will tax refunds next year suffer due to the extra stimulus income this year? These are all things that are being hammered out.

In the here and now, the pandemic is making life hard for everyone. That doesn’t mean that just Americans are feeling the strain from the Coronavirus. All across the world, people are feeling it. At this point in time, it is hard to envision the future because we don’t know when this is going to fizzle out.

What people should be worried about at this time is unity. The more people who ignore the pandemic and put people at risk, the less the future is going to matter. This could draw out for years instead of months if people do not join in a united front against COVID-19.

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