Most Americans need 2nd stimulus

The coronavirus recession has split America in two: those who are still financially intact, and others facing lasting scars.

Congress is set to reconvene this week at a critical juncture following a two-week recess as the $600 weekly unemployment benefits under the CARES Act are set to expire at the end of the month. Policymakers will debate whether more emergency stimulus checks and extra unemployment payments are needed to keep jobless people afloat as workers and businesses continue to grapple with the economic fallout of the pandemic.

More than two-thirds of Americans say they still need a second stimulus check from the government to help make ends meet, according to recent data from tax preparer Jackson Hewitt. And about a third of that group said the $1,200 checks needed to be more than the previous round. Only about a quarter of those surveyed say they wouldn’t need another emergency payment.

“Another round of stimulus is badly needed,” says Gregory Daco, chief U.S. economist of Oxford Economics. The expiring of enhanced unemployment benefits could represent a “severe shock” to people’s income since another potential round of stimulus checks likely won’t be as large as they previously were, he added.

More states have paused or rolled back their reopening plans following a resurgence in coronavirus cases, which could cause more people to lose their jobs, experts say. A staggering 51.3 million Americans have filed for unemployment over the past 17 weeks during the pandemic.

A quarter of Americans are using the stimulus money to cover major bills including their rent or mortgage, student or car loans and hospital bills. And 20% are using the money to pay for essentials like groceries or medical supplies, the Jackson Hewitt data showed.