Almost everyone is currently talking about the stimulus checks, and so is billionaire Mark Cuban. The billionaire recently shared his ideas on how the government could keep the economy alive. One of his (Mark Cuban) ideas is to give families $1,000 in new coronavirus stimulus checks every two weeks for two months, but on the condition that they would spend it immediately.
How Cuban plans to boost the economy
Millions of Americans received stimulus checks of $1,200 under the $2.2 trillion CARES Act, which was signed into law in late March. Since then, several proposals have come up for the second round of coronavirus stimulus payments. One of the most discussed proposals is the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act.
Jim O’Shaughnessy: Fear Signals Created By The Reptilian Brain
ValueWalk's Raul Panganiban interviews Jim O’Shaughnessy, Chairman, Co-chief Investment Officer, and Portfolio Manager at O’Shaughnessy Asset Management. In this part, Jim discusses the fear and emotional signals created by the reptilian brain. Q1 2020 hedge fund letters, conferences and more That's very cool. For the factor to try to seek the reason why it works, Read More
The $3 trillion package has already been passed by the House of Representatives on Friday evening. Similar to the CARES Act, the Heroes Act proposes giving $1,200 to every American, but for a household, it sets the limit of up to $6,000.
Cuban, on Sunday, shared his ideas – via a series of tweets – on what the federal government could do. He said that the administration could utilize trickle-up economics to boost consumer demand, and in turn, the economy.
The billionaire noted that the federal Paycheck Protection Program was a "Great plan, difficult execution. No one's fault” and that it didn’t worked. Thus, Cuban suggests that a different approach is now needed.
In addition, because this will take time, we need to consider an interim spending stimulus program. All 128m households could get a $1k check every 2 weeks for the next 2 months that MUST BE SPENT WITHIN 10 DAYS OF RECEIPT OR IT EXPIRES. This "use it or lose it" prog will
— Mark Cuban (@mcuban) May 17, 2020
He said the only thing that can save businesses is consumer demand. “No amount of loans to businesses will save them or jobs if their customers aren't buying,” he tweeted.
Cuban suggested that his two ideas will not only help the businesses and economy, but the people as well. He suggested starting a nationwide federal jobs program. The program will employ people to assist in tracking, tracing and testing of coronavirus. Moreover, the program would act as a support for “populations including long term care.”
New coronavirus stimulus checks but with a catch
Along with the nationwide federal jobs program, Mark Cuban suggested a new coronavirus stimulus plan as well. Since the benefits of the federal jobs program could take some time to realize, Cuban suggested an "interim spending stimulus program."
As per the billionaire, the federal government should send 128 million households in America $1,000 in the form of new coronavirus stimulus checks every two weeks for two months.
However, these new stimulus checks would come with a catch, and that is, the recipient would have to spend it within 10 days of receiving it. Such a condition, according to Cuban, would help in raising the demand of non-essential goods and services, and eventually, stabilize the job market.
“Cost about $500b, but it will allow for demand for non essential products and services to increase, hopefully keeping most businesses alive, as we learn what the impact of re-opening is on the spread and whether or not employment grows organically,” he tweeted.
Cuban’s ideas about coronavirus stimulus checks caught the attention of many, including Alexandria Ocasio-Cortez. The Congresswoman tweeted, “Totally agree, @markcuban. It’s time for a Federal Jobs Guarantee.”
Totally agree, @markcuban.
It’s time for a Federal Jobs Guarantee. https://t.co/V8I9LLLUTC
— Alexandria Ocasio-Cortez (@AOC) May 17, 2020
Other recent comments from Mark Cuban
This is not the first time Mark Cuban has expressed his views on the coronavirus outbreak. Last week, talking about the measures before reopening the economy, Cuban suggested that an environment needs to be built so that consumers feel safe going out and employers feel safe to call the staff back, but for that to happen “we have to get to that point where the White House standard becomes the national standard.”
The Dallas Mavericks owner said that he will want to use the “White House protocol” for his employees. “Whatever the White House is doing for the president and vice president, that’s the protocol I want to use for my employees. And if I can’t adhere to that, then why would I put them at risk?” Cuban said on “Squawk Box” last week.
New coronavirus stimulus checks idea posted on Twitter
Earlier, this month, Cuban also captured the attention of many when he raised questions on the intent of the members of Congress and President. In a tweet, the billionaire said, “… our Senators, members of Congress and President ain't doing sh-t, that I can tell, other than looking for someone to blame. The reality is that we don't know what the right answers are, but it sure would be nice to be able to have a civil discussion about the options.”
But our Senators, members of Congress and President ain't doing shit, that I can tell, other than looking for someone to blame. The reality is that we don't know what the right answers are, but it sure would be nice to be able to have a civil discussion about the options.
— Mark Cuban (@mcuban) May 4, 2020
Cuban also recently caused a stir when he suggested that he may still join the 2020 Presidential race. His name has long been mentioned as a possible presidential candidate.
“I never would have considered it prior to a month ago, but now things are changing rapidly and dramatically... I’m not saying no, but it’s not something I’m actively pursuing,” Dallas Mavericks owner said. “I’m just keeping the door open... You just don’t know what can happen between now and November.”