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Research shows that adding two more stimulus tests can help 12 million people out of poverty


The Economic Security Project has argued that more stimulus testing would be especially helpful for low-income households and communities of color.

April 23, 2021

3 minutes of reading


A report from the Economic Security Project, a nonprofit that favors guaranteed income, suggests sending fourth and fifth stimulus checks could lift at least 12 million Americans out of poverty.

Announced this month, research says that stimulus test deliveries have previously been shown to help families cover basic needs and increase sales for small businesses.

“Direct payments to households are wide enough to help most people who need it, filling gaps in other aid programs like unemployment insurance, while flexible enough to allow people to address their unique challenge, “writes the report’s author. “Cash is a leading force in decrease poverty in one of the deepest recessions in modern history, and one of the only policies that can narrow the persistent imbalance in poverty, income, and wealth among Americans. skin color and white Americans. “

Related: How Does The New Stimulus Affect You?

Over the past year, the government has distributed about $ 850 billion in direct cash to Americans in the form of $ 1,200 checks, $ 600 checks, and more recently $ 1,400 checks. According to the nonprofit, that amount has increased income by 20% for low-income households. More specifically, stimulus tests generated an additional $ 250 billion for people of color and $ 480 billion for households in the lowest 60 percent of income.

“A year of research into stimulus testing shows that cash is one of the best policy interventions out there in a crisis,” writes the authors. “Cash is of the greatest help to most people who need it, fueling the economy and shortening the recession.”

In arguing for the fourth and fifth stimulus tests, the nonprofit says that direct payments will not only boost consumer spending and increase small businesses’ revenue, but also increase. state and local sales. The Economic Security Project also cited President Joe Biden’s American Rescue Plan – which included a third stimulus test and lifted nearly 16 million Americans out of poverty – as further evidence that the Direct payment is beneficial. Present, the poverty line for an American household for three people is $ 21,960.

The non-profit organization wrote: “Cash is the lifesaver for Americans in this crisis, and will last as long as the crisis continues”. “But the job ahead is to make sure that the most unequal recession in modern history will not be followed by the most unequal recovery.”

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