The United States government handed out stimulus check on Friday, March 27, 2020 to the United States citizens as well as businesses and this $2.2 trillion was meant to stabilize the economy of the United States during and after the pandemic, fund, citizens, companies, businesses and even government sectors which suffered from the effect of the Virus. There was a bill of about 800 pages showing how the stimulus package will be shared, what will be shared and who gets what. The breakdown was thus; $550 billion one-time direct payment to individuals, $510 Billion for Corporation loans, $280 Billion Tax Breaks, $377 Billion for small business loans, $175 Billion to states and local governments for health cares in the local government level as well as other government bodies that got affected, $396 Billion to the health sector.
Let’s face the reality, where will people spend this stimulus checks at. The stimulus checks handed to individuals do not come with a manual on how to spend it. The citizens are free to use this checks as they will and you know the funny thing here, people just spend this checks to get things and the goes into the pocket of businesses and surprisingly we know that a lot of this businesses trade on wall street which means a very large percentage of this free money finds its way back to Wall Street. It is no lie that about 25% of employed American will lose their jobs and so many are even unable to pay their mortgage.
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Where is your Stimulus Check Going?
Is that a question at all? I said it before that they are going straight to wall street. When people spend the free money buying things at Kroger, Amazon, and Walmart or even pay for subscription on Netflix and so on, the money goes to the companies and these companies trade on Wall Street. Unlike the 2008 recession, this looks different because people still had money to spend whereas in 2008 and 2009, there was no money to spend thereby allowing the stock market to crumble for a long period which affected the economy.
With this stimulus, companies have bailout which gives companies access to liquid money giving them a sense that the economy isn’t crashing anytime soon which will give the economy a boost also, stimulus checks to individuals means there is money flowing around so people can spend on goods.