What is Stimulus Check & How to track your Stimulus check
A stimulus check is a check given by the government to the tax-paying people. Stimulus checks are given to strengthen the nation’s economy by providing consumers an allotted amount of funds to spend. Consumer spending is one of the main elements of a good economy. If you know how to budget your money properly, this can go a long way. If there is any economic uncertainty, the spending capacity of consumers is lessened. At that time most of the government’s given stimulus checks to consumers to maintain the consumer spending capacity.
The taxpayers will get the stimulus check by mail or get the tax credit. The consumers who had not paid any taxes they will get the stimulus check automatically applied to the outstanding amount they have. Stimulus checks are one type of fiscal policy, which means stimulus checks are a policy used by the government to try and impact the economic situations of the nation.
Fiscal policy means the government spending and taxation policies used to impact the economic situations of the nation. The fiscal policy does not have any relation with the central bank in contrast to the monetary policy that is associated with the central bank. It is a policy developed by the nation in view to face them if there is any economic crisis arise in the country. In some economic crisis situations, the government takes few measures to overcome the economy falling into the recession.
Effectiveness of Stimulus Checks
By the studies of several consultancies on stimulus checks compare with other fiscal and monetary policies in the year 2008 they found that stimulus checks the best measure to decrease the unemployment rate and improve the GDP growth rate as well. The government that declared a stimulus check thinks that a huge amount of debt to declare a check. Take one recent example, in the USA the 2020 COVID-19 stimulus check was part of a $2.2 trillion economic relief bill they announce in the parliament of the USA. The government already they have many debts this measure is too risky for those governments.
Alternatives to Stimulus checks:
The government thinks about several other alternatives to a stimulus that are effective. Below see some of those alternatives:
- Allowing tax deferrals
- Loan deferrals
- Increasing spending on government projects
- Support for specific hard-hit industries
Coronavirus stimulus checks: How much you’ll get and when
In the USA, Congress has authorized two stages of stimulus checks. The first stage includes a $1,200 amount from the Coronavirus Aid, Relief, and Economic Security(CARES) Act, which was signed into law in March 2020. On December 27 2020 previous President Donald Trump signed a second $900 billion economic relief package that includes another stimulus check paying up to $600 per individual. On March 11 2021 $1.9 trillion Coronavirus relief package includes the third stage of stimulus check of $1,400 that was signed into law that was already announced by President Joe Biden.