A Summary on Stimulus Checks

A Summary on Stimulus Checks

By definition, a stimulus check is a check or some amount of money sent by the U.S government to its taxpayers to stimulate the economy by providing consumers with some money to spend on their daily basis. The reasoning under this project is to provide relief economic hardships. The stimulus checks are sent via email or through direct deposits to the individuals who qualify for the checks in an onetime occurrence. Stimulus payments also vary depending on the capacity and the responsibilities one has and also depending on the amount of salary an individual earns. The current issues like the COVID-19 pandemic have raised alarm on the U.S government and the other nations worldwide are going to distribute the funds and maintain an economically stable country.

The COVID-19 pandemic has posed a lot of threats to the U.S government since the viral infection ranges from mild to severe illness and it is also highly contagious. Safety measures have been put in place in controlling the spread of this deadly disease. These control measures include proper hygiene, social distancing, and covering of nose mouth. A lot of business which had been operating normally have been closed down leaving only the essential businesses to operate. Despite the essential businesses being allowed to operate, there have also been strict regulations on the hours of operation and strict regular cleaning and sanitization. The essential businesses which are high on demand during this pandemic include medical stores, groceries, and banks. The non-essential businesses were therefore closed down and required to work from home to avoid the overcrowding in the towns and cities to avoid further spread of the disease. Some non- essential businesses like the grooming and tourism industries have been critically affected since they heavily depend on physical interaction and therefore the aspect of working from home does not apply to them.

The COVID-19 pandemic has greatly impacted the U.S economy and this has led to quantitative easing. Quantitative easing is therefore an unconventional monetary policy whereby the central bank purchases long-term securities to capital supply and encourage money lending and investments. The aspect of quantitative easing is similar to that of stimulus checks since they both focus on increasing cash flow to boost the economy. The advantage of stimulus checks is that it helps in maintaining cash flow in the economy and therefore boosting not only small and pressed businesses but also large scale businesses. The negative impacts of stimulus checks include; lack of enough funding, debt collectors seizing checks, and errors in sending the payments among many other negative impacts. It is therefore important to put more efforts into placing policies and strict prevention measures to control further spread of coronavirus so as the economy moves forward.