99 Senators Agree That Any New Stimulus Checks Must Be Targeted

Nearly All Senators Voted For Sen. Susan Collins’ (R-ME) Amendment Declaring That Any New Stimulus Checks Should Be Targeted At Those Who Truly Need Them

SEN. SUSAN COLLINS (R-ME): “It is very unlikely that American households with family incomes of $300,000 have suffered significant financial harm as a result of the COVID-19 pandemic. Our amendment ensures that this much-needed financial relief gets in the pockets of the struggling families that need it most.” (Sen. Collins, Press Release, 2/04/2021)

99 Senators voted for Sen. Susan Collins’ (R-ME) amendment to ensure that economic impact payments don’t go to wealthier people who don’t need them. (S.Amdt.775, S.Con.Res.5, Roll Call Vote #19: Amendment Agreed to 99-1: D 48-0; R 49-1; I 2-0, 2/04/2021)


Under House Democrats’ Spending Plan, Some Families Making More Than $300,000 Could Receive Stimulus Checks

“As structured by House Democrats, some portion of the [stimulus] checks could end up going to families making more than $300,000 a year who have not suffered income loss during the pandemic.” (“Biden Says He’s Willing To Negotiate Parameters Of Coronavirus Deal, But ‘Time Is Of The Essence’,” The Washington Post, 1/25/2021)


Only A Third Of Americans Spent Their First Stimulus Payments, With Most Saving The Money Or Paying Debts While ‘Consumers Expected To Spend An Even Smaller Share Of Future Stimulus Payments’

“An analysis by the Federal Reserve Bank of New York found that consumers socked away more than a third of the first stimulus checks, which were sent to households as part of the $2 trillion Cares Act enacted last March. Just under a third of the stimulus payment, 29%, got spent, while 36% was saved and 35% used to pay down debt. The survey also found that consumers expected to spend an even smaller share of future stimulus payments, and use a higher share to pay down debts.” (“Saved Stimulus Checks Expected To Help Spur Economic Recovery,” The Wall Street Journal, 1/26/2021)

Only Those Who Really Needed The Money Spent Their Checks Immediately, While Those Whose Circumstances Were Better Saved The Money Instead

“Lower-income households are more likely to spend their checks straight away. Consumers with less than $100 in their bank accounts spent over 40% of their stimulus payments within the first month, while individuals with more than $4,000 in their accounts barely spent a dime, according to a recent study published by the National Bureau of Economic Research.” (“Saved Stimulus Checks Expected to Help Spur Economic Recovery,” The Wall Street Journal, 1/26/2021)


In Fact, Americans Saved Approximately Twice As Much In The First Three Quarters Of 2020 As During The Same Period Of 2019

“Many U.S. consumers are starting 2021 flush with savings likely to help fuel the economic recovery this year. The latest federal Covid-19 aid package sent $600 checks to many households that also received relief money last year, while more affluent households have built up pools of cash by curbing their spending during the pandemic. Americans saved $1.4 trillion in the first three quarters of 2020, or about twice as much as in the same period of the prior year, according to analysis by Berenberg Economics. That amount is equivalent to nearly 10% of 2019 household spending, estimates Berenberg’s chief economist, Holger Schmieding.” (“Saved Stimulus Checks Expected To Help Spur Economic Recovery,” The Wall Street Journal, 1/26/2021)

JAMES SWEENEY, Chief Economist at Credit Suisse: “The household sector of the U.S. looks to be in good financial shape.” (“Saved Stimulus Checks Expected To Help Spur Economic Recovery,” The Wall Street Journal, 1/26/2021)



Related Issues: Economy