How did Americans use their coronavirus stimulus cheques?
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Source: The Economist (paywall)
OF THE DOZENS of provisions tucked into Americas CARES Act, the $2.2trn fiscal-stimulus package passed in March, none was as popular as the one-off payments to households. Taxpayers earning less than $99,000 a year ($198,000 for couples) were sent cheques worth up to $1,200, with an additional $500 for each child. In total, the Internal Revenue Service made 159m payments worth $265bn. The hope was that consumers would spend the windfall and pep up the economy, which shrank by 9.5% in the second quarter.
But a new working paper by three economistsOlivier Coibion, Yuriy Gorodnichenko and Michael Webersuggests that Americans did not use the payments quite as Uncle Sam had hoped. Using data from a recent survey of 12,000 Americans conducted by Nielsen, a market-research firm, the authors found that just 42% of the money was spent. Another 27% was saved. The remaining 31% was used to repay debts.
Read more: https://www.economist.com/graphic-detail/2020/09/02/how-did-americans-use-their-coronavirus-stimulus-cheques
Dial H For Hero
(2,971 posts)Zoonart
(11,750 posts)Paid our taxes...check...checked online...check...sent in a form stating we had not received...check...
NO CHECK.
JI7
(89,182 posts)Zoonart
(11,750 posts)fill it out and send it in.
BigmanPigman
(51,432 posts)I guess Mnuchin is using it for something more important....like his personal piggy bank where your check likely is too.
Igel
(35,197 posts)For 2018 and 2019.
Got taxes 2 weeks later, economic impact check a week later.
A month later got a letter with Trump's signature on it talking about the economic impact check.
It's still sitting in our family's joint checking account. But knowing it's there I used money from my personal checking account (such are family finances) to buy a cello. If I could get four or five of me together we could play some Mozart quartets or quintets (since I now have a 2 vlns, 2 vlas, and a cello.)
If there's a second check that I qualify for, I get a decent bow.
The OP numbers shouldn't surprise anybody. 80% of people were not unemployed. Those who were unemployed by the lockdowns tended to be service-industry workers. If you made $70k or more, you probably kept your paycheck. (With some of that being market distortions due to the PPP, the consequences of which are just now starting to play out.)
iluvtennis
(19,758 posts)BigmanPigman
(51,432 posts)That seems like a futile effort but it may come to that.
iluvtennis
(19,758 posts)in 2 weeks. He mailed filed hardcopy return and just got the refund last week. He never called IRS, he just waited.
BTW, I had read when covid outbreak first started and the stimulus payments had to be processed that IRS put all processing of hardcopy returns on hold. The processing was on hold for many months.
BigmanPigman
(51,432 posts)but is wouldn't go through for some reason (after spending 6 hours doing it..first time I tried on my own and it was a learning process) but I mailed all the papers in. Since this was before any USPS slowdown I was wondering if that was adding to the delay. I guess I will wait longer now that I know I am not alone. I can be patient, I taught 1st grade for 15 years and have a lot of practice. Thank you for responding, I really appreciate it!!!!
iluvtennis
(19,758 posts)you'll get your refund soon.
dhill926
(16,234 posts)lastlib
(22,981 posts)Other $700 went to key Senate campaigns & PACS like Senate Majority and Payback Project. I want to clean the GOPher basturds out!
Initech
(99,915 posts)Which I hope to actually purchase in the next couple of weeks.
frazzled
(18,402 posts)shortly after the check came. Well, it didnt die, it just developed an issue that would have cost far more than the 14-year-old-car was worth.
We used the money for a down payment on a new car (same make and model), which we hope will serve us well for another 14 years.
Initech
(99,915 posts)I'm looking at buying a new Subaru Legacy in the next few weeks. There's some crazy good deals on new cars right now. Subaru has 0% financing and includes the first two years of maintenance.
Hell I just got back from the dealership looking at this car.
George II
(67,782 posts)....than we do.
The Genealogist
(4,723 posts)the money that pays for food, shelter, transportation, etc.
During these times of staying in as much as possible, I spend no money frivolously. I go to the grocery market and necessary work meetings. That's about it. No place to waste money, and too afraid of suddenly losing employment to waste anything anyway.
Drahthaardogs
(6,843 posts)Seemed like a good investment at the time
Archae
(46,262 posts)One of these 1 TB jobs from Lenovo.
iluvtennis
(19,758 posts)to savings.
airplaneman
(1,237 posts)Just in time it was getting pretty low
-Airplane
Mr.Bill
(24,104 posts)My small town could use the business and the city government can use the sales taxes. Largest single purchase was for building supplies to rebuild my front porch and steps, which was badly needed.
yaesu
(8,020 posts)see charts showing what wall street banksters did with that 7 plus trillion they got.
aggiesal
(8,864 posts)Polybius
(15,239 posts)So that $1,200 is now over $3,000.
Dial H For Hero
(2,971 posts)AnotherDreamWeaver
(2,846 posts)PoindexterOglethorpe
(25,750 posts)the other half to a local food bank.
If there's another check, I will do pretty much the same.
I recognize that I ham very fortunate to be able to do this.
More_Cowbell
(2,190 posts)After seeing a local news story about how they stretched each dollar to feed 10 people. I figured nothing I could do with it would have that much of an impact.
Then I lost my job due to COVID a month later.
Omaha Steve
(99,073 posts)Analysis.
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