Daily Money - Issue #46: OK, let's try this again

The form that takes, though, could vary.

The CARES Act stimulus check passed with ease because “it was a big shock, and we wanted to make it simple and give it to everybody,” says Ioana Marinescu, an economist at the University of Pennsylvania. This time around, there’s a lot more drama around both how big the stimulus payments should be and who should get them.

House Democrats have introduced the Health and Economic Recovery Omnibus Emergency Solutions Act, which would give people $1,200 per family member and max out at $6,000 per household. Meanwhile, Kamala Harris, Bernie Sanders and Ed Markey have backed the Monthly Economic Crisis Support Act, which would send $2,000 a month to every individual until the pandemic is over.

Here’s where politics comes in.

The HEROES Act got passed in the House, but it was basically DOA in the Republican-controlled Senate. The White House is reportedly working on its own package, but it won’t be done until July. Mitch McConnell has been generally reticent to even touch the issue; he’s said the next stimulus bill will be the final one.

Something’s gotta give, according to Marinescu. Without a stimulus, there’s a severe threat of economic dislocation. People won’t buy things because they don’t have money. Companies won’t make money, so they will lay workers off. Those people won’t buy things because they don’t have money, and so on until the end of the world. (Exaggeration mine, not the economist’s.)

Our best hope may be for some sort of middle ground. There is precedent: During the Great Recession, 124 million households received rebates in 2008. Then, in 2009, many people got tax cuts and credits — not straight-up deposits into their accounts.

To that end, Marinescu has put forth a proposal suggesting people who lost their jobs as a result of the pandemic receive an extra $600 a week for four months, regardless of their unemployment status. She said it’d probably be more palatable to conservatives than cutting checks to everyone, and it would still achieve the intended effects of jump-starting growth.

“This could be a sweet spot of compromise,” Marinescu adds. “We want people to spend money — that’s what helps the economy to move forward. From that perspective, targeting those who lost their jobs could be a good idea.”

(but please don't tell me you scrolled past all of my hard work)

People would like to see the government approve additional stimulus checks, but we probably won’t get them anytime soon (if at all). 

Remember: This is all just one step in taking the economy out of its coma. Groshen said the U.S. likely also needs to plan for investments in infrastructure, a workforce development system, support for business formation, epidemiology improvements and more. Lingering public health concerns mean it’ll be a gradual process.

“We are beginning to wake our economy up, but we don’t want to wake it up too fast because that’s too dangerous,” she says.

via GIPHY

Take control through Self.

Self offers a responsible and accessible way for you to start building credit. How? Meet Self’s Credit Builder Account. It doesn’t require a credit check to get started! The Self credit builder account is like a reverse loan, where you select a plan that fits your budget, make payments to yourself, and get the money back at the end minus interest and fees. While you make monthly on time payments, Self reports to all 3 credit bureaus. Payment history makes up 35% of your credit score. Build positive payment history and credit while also building your savings!

Start taking control of your credit today!

*Disclaimers, Rates and Fees

check out this crazy celebrity purchase

via Instagram

This isn’t technically a purchase, but I’m making an exception. Grimes — musician, Elon Musk’s girlfriend and X Æ A-Xii’s mom — is selling some of her soul. It’s part of an art exhibit. She originally set the price at $10 million but, like everyone who has tried to make quick cash on Craigslist, eventually decided just to take the best offer. The buyer will be contractually entitled to “share in the joy and happiness created by Grimes’ Soul,” including “flashes of brilliant white light and an ethereal feeling.” So there’s that.

five things I'm loving online right now

send me cute pictures of your pets, please

CREDIT: @JOANNA17769249

This is Domino, a security guard who is staring out the window while waiting for Congress to agree on a new stimulus pawkage.

All this learning is making me hungry for mac and cheese.

See you next week.

Julia

P.S. I loved the feedback I got last issue about credit unions. Scholars Jason and Jeffrey pointed out that most credit unions participate in cooperative ATM networks, which mean customers have access to cash all over the place (including at 7-Elevens). Scholars Michele and Jim said that credit union debit and credit cards aren’t great for international travel. And finally, Scholar Margaret chimed in to say she loves her credit union because she truly feels like they have her best interests at heart (not shareholders’). We could all use a little TLC.

P.P.S. Do you think people should get a second stimulus check? What’s your favorite Pokemon? How much would you sell your soul for? Send in a Dolla Scholla holla at julia.glum@money.com or @SuperJulia. Your comment may be featured here in the next issue!