What could a fourth stimulus package include?
There is a lot of talk about whether there will be a fourth stimulus package. Both sides feel that we need to do something. Whether that is cutting payroll taxes, or more direct payments to the eligible population. In this article, we are going to break down what we could see in another stimulus package.
Why we should spend money now
Due to the extremely low-interest rates as of now, it’s cheap for us as a country to borrow money and get incur little interest. But, who lends country money? The answer to that can be complex. But for the sake of making this easy to understand, there are a few main groups of people that lend our government money.
- Investors that purchase federal bonds and securities, both it’s citizens and foreign investors
- Government agencies that make more money than they use and then “lend” to the rest of the federal government, and-
- The federal government itself.
The next stimulus package
What I personally believe we can expect to see in the next stimulus package:
- More funding for small businesses affected by COVID-19
- More funding for hospitals, state and local governments
- funding for tacking and tracing of individuals diagnosed with COVID-19
- Payroll tax holiday
- Employee/Employer incentives to get people back to work
- Some type of direct/pay raise for front line workers
Here are some things that I think could also be included in another stimulus package:
- A prolonged stay on foreclosures and evictions
- Prolonged unemployment benefits
- Pay raises for Medical staff and Emergency service workers
Please note that this is only my opinion on what another possible bill could reflect. If there is another bill it could be reflected differently.
Interest rates are low
The federal reserve recently cut interest rates even more to between 0.25-0%, that’s why we should spend now. It means that interest rates on credit cards are going to go down, things like interest rates on loans will go down. However so will savings accounts and High-Yield Savings accounts.
Congress is set to vote on a new stimulus package on Friday, May 15th, 2020. This would be a 3 trillion dollar bill if passed and could be notified even further by the senate before it is signed into law if it is signed into law.