Do COVID-19 Stimulus Checks Really Aid the US Economy?

The vast majority of Americans have experienced that the financial support provided by the COVID-19 stimulus checks has not only failed to bolster the economy but has instead contributed to wealth inequality and corporate welfare while leaving essential workers and students struggling. Critics argue that these stimulus measures were poorly designed and do not address the true needs of those most affected by the pandemic.

Economic Redistribution and Inequity

One of the primary arguments against stimulus checks is their redistribution of wealth. In the case of the 2020 stimulus checks, individuals earning over a certain threshold were excluded from the benefits. This means that many middle-class and lower-income families who are the backbone of the economy did not receive any assistance, which is paradoxical given their role as consumers and taxpayers.

To illustrate, consider the scenario of a working-class family in Boston, where the average middle-class income ranges from $150,000 to $200,000 annually. These families are often burdened by high taxes, which automatically qualify them for a direct stimulus payment based on last year's taxes. However, this logic has been challenged, with some arguing that the stimulus should be based on current economic status rather than past income levels.

Direct Payments vs. Essential Workers

A significant issue with the current stimulus framework is the disparity in support between essential workers and those who are unemployed or under-employed. Essential workers, such as my parents, have seen their working hours reduced significantly, yet they still face discrimination when it comes to receiving stimulus payments. My mother, who works part-time as a preschool teacher, had her hours cut drastically but was denied enhanced unemployment benefits because she is working and earning a reduced wage. Meanwhile, corporations that have received massive bailouts are rewarding their executives with stock buybacks, a form of wealth redistribution that benefits the already wealthy.

Case Studies and Examples

During the early days of the pandemic, many businesses that were deemed essential, such as the car dealership where I used to work, laid off their staff and paid them under the table to double their income without paying taxes. This practice is not only legal but also exploitative, as it further exacerbates wealth inequality. Furthermore, essential workers, such as my father who saw a significant reduction in his commission-based income, were left out of stimulus payments despite their critical roles in maintaining the economy.

The situation with student stimulus payments is another glaring example of missed opportunities. As a student attending college and residing with my parents, I faced potential healthcare loss without receiving any stimulus support. This is not fair, especially considering the overwhelming student debt and the increased financial strain on young adults during the pandemic.

Corporate Bailouts and Profits

While essential workers struggle, some of the largest corporations in the United States continue to make substantial profits. Companies like Walmart, Berkshire Hathaway, Salesforce, Cisco Systems, and PayPal are reaping billions in profits without respecting the social contracts they hold as corporations. They are laying off employees while profiting from government bailouts, a phenomenon that is not only unethical but also damaging to the economy. Essential workers like my father, who saw a cut in his income, and my mother, with her reduced working hours, are not being adequately supported or compensated.

The Save Our Stages (SOS) Act, designed to support the live events industry, fell short in gaining sufficient support in the Senate and remains a mere proposal. This highlights the systemic issues in how the stimulus funds are allocated, favoring large corporations over the individuals who suffer most from the pandemic’s economic impact.

Healthcare and Housing Crises

The pandemic has also exposed the profound healthcare crisis in the United States. Millions of Americans have lost health insurance, with younger generations being disproportionately affected. This has led to a significantly higher mortality rate compared to other developed nations. In an era where the wealthiest and most powerful individuals have profited from the suffering of others, it is imperative to address this disparity by implementing a national healthcare system.

Additionally, the housing crisis is another critical issue. The increasing ownership of rental properties by institutional banks and financial institutions is leaving millions of Americans vulnerable to eviction. This shift in property ownership has exacerbated the housing crisis, which is particularly concerning in a pandemic where housing instability can lead to further health and economic complications.

Reforming Stimulus Programs

To improve future stimulus programs, there are several key reforms that need to be implemented:

Subsidizing worker payrolls to prevent layoffs during economic downturns. Ensuring essential workers and students are prioritized in stimulus allocations. Guaranteeing eviction protections and financial support for renters. Expanding access to healthcare as a fundamental right, regardless of income or employment status.

Only through such comprehensive and equitable measures can we ensure that the stimulus checks are effective in aiding the economic recovery and promoting social welfare. It is the responsibility of elected officials to enact these reforms, and the American people have the right to demand action that truly benefits the majority.