Five Reasons Why Stimulus Checks Aren't the Answer
Heritage Explains
Heritage Podcast Network
4.7 • 847 Ratings
🗓️ 4 January 2021
⏱️ 14 minutes
🧾️ Download transcript
Summary
Both Democrats and Republicans approved a massive omnibus budget that spends nearly a trillion dollars for Covid-19 relief. This includes checks of $600 to any Americans making $75,000/year (or less) regardless of their employment situation. Now, President Trump and other voices on the left and the right are arguing to increase this payment to $2,000. The media narrative and many other people are calling this a "stimulus," but what will it stimulate? On this episode, we go through the five reasons why so-called stimulus checks (of any amount) are not the answer to economic hardship caused by the pandemic, and why safely re-opening the economy is the best approach.
Show Notes:
5 Reasons Why More Stimulus Checks Aren't the Answer
Congress Is Right Not to Pass Bailouts for States and Cities
Previous Heritage Explains episode on out-of-control Federal spending
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Transcript
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| 0:00.0 | From the Heritage Foundation, I'm Tim Desher, and this is Heritage Explains. House Speaker Nancy Pelosi saying the massive COVID relief and government funding bill is on its way to President Trump. |
| 0:35.7 | This comes after House Republicans block |
| 0:37.9 | Democrats' efforts to increase direct payments to Americans from $600 to $2,000, which the |
| 0:43.4 | President had demanded. |
| 0:45.0 | I am asking Congress to amend this bill and increase the ridiculously low $600 to $2,000, or $4,000 for a couple. |
| 1:01.0 | It's a new day. |
| 1:07.0 | The Democrats and President Trump are actually on the same side of an issue. |
| 1:12.8 | Both supporting $2,000 checks sent by the federal government |
| 1:16.6 | to anyone making $75,000 per year or less. |
| 1:21.6 | These checks will be sent regardless of whether or not a person is employed. |
| 1:26.8 | If we watch or read the news, one common word is used to |
| 1:30.7 | describe these checks. Stimulus? Here we go again. Since when did government payments of any amount stimulate anything except our already out-of-control debt? |
| 1:51.0 | Or given the pandemic, is this time different than times in the past? |
| 1:57.0 | Will this money actually stimulate economic activity? |
| 2:00.5 | Will increasing payments from $600 to $2,000 do anything meaningful for people? |
| 2:07.7 | Adam Michelle is a senior policy analyst in the Rose Center for the federal budget here at the Heritage Foundation. |
| 2:13.7 | This is his issue, and he tracks it well. |
| 2:17.7 | He's going to correct this dangerous DC narrative |
| 2:20.5 | and walk us through the five reasons why a stimulus check is not the answer. |
| 2:26.4 | Rather, the best path forward is the government working to ensure |
| 2:30.0 | that the economy can reopen safely. |
| 2:48.6 | Adam, thank you so much for being here with us this week to explain a very, very complex circumstance right now where we stand. |
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