Those looking for another update on Coronavirus stimulus check 2 will be happy to hear that economists are on their side. In fact, one group of more than 150 economists are calling for more than just one more check. They want to see a bill with “automatic triggers” for additional Coronavirus stimulus checks.
Update on Coronavirus stimulus check 2: economists call for bill
The Economic Security Project and the Justice Collaborative released a letter signed by 156 economists this week. The letter calls on lawmakers to pass a bill that includes "automatic triggers for cash stimulus payments. The economists want lawmakers to send regular payments to Americans until the economy reaches a certain level of recovery.
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Claudia Sahm of the Washington Center for Equitable Growth was one of those who signed the letter. She told Fortune that her research indicates that direct cash payments are one of the best options when it comes to stimulating the economy.
Here's what the letter says
As far as an update on Coronavirus stimulus check 2, the letter states that "regular, lasting direct stimulus payments" will increase consumer spending, driving the recovery in the economy and shortening the recession. The letter explains that most Americans are just trying to keep everything going.
The first round of payments enabled Americans to get by for a few weeks, but research indicates that people spent their checks quickly on essentials. Now that the worst is over, the focus shifts to reviving the economy.
The economists said consumer spending accounts for about two-thirds of GDP. That means breathing life back into the economy will require "sustained efforts." They said even after businesses reopen and jobs start coming back, there will still be major economic fallout. They warned that demand will continue lagging if Americans don't have any money to spend.
What the Coronavirus stimulus checks might look like
The economists suggest regular stimulus payments tied to economic indicators to help families stay afloat and boost economic activity. They add that automatic stabilizers would ensure that relief is available for as long as it's needed. They would also promote a strong recovery and efficient government.
The economists said many economists believe the response to the Great Recession was too small and too brief. As a result, they argue that the recovery was slow, and preventable harm was done to low-income Americans.
Cash assistance would inject resources through stimulus checks and refundable tax credits for low- and middle-income households that need help and are likely to spend the money.
"Continuing recurring payments until there is reliable evidence of an economic recovery – such as low and declining unemployment – will promote certainty for all sectors of the economy and for state and local governments and federal agencies," the letter states.