October 20, 2021

Will the Growing U.S. Economy Kill the Fourth Stimulus Payment?

Here’s What You Need to Remember: The lessons of 2020—namely, the effectiveness of stimulus payments in staving off disaster—will be remembered for future crises. A Tax Foundation study found that the money provided by the first stimulus check quickly re-entered the economy, with about 75 percent of the dollar value spent right away.

In the early days of the pandemic, as lockdowns began and businesses closed, the Trump administration quickly proposed the CARES Act to keep the U.S. economy afloat. The reason for doing so was clear: the crash in early 2020 was the worst in the history of the United States, even briefly exceeding the 1929 stock market crash. To prevent another Great Depression, Democrats and Republicans worked together to pass the $2.2 trillion legislation, which included a number of provisions designed to support small businesses, including Payback Protection…

Read full article here: nationalinterest.org