The House of Representatives has taken a measure to increase incentive checks for people below a certain income level to $ 2,000. The bill is now going to the Senate, where it faces an uncertain future.
Trump has backed the idea of greater controls, but some Republicans don’t think an increase is warranted given how much it would raise the stimulus bill’s overall price tag.
Rep. Kevin Brady, a Texas Republican, explained in a post on Twitter the reason for the backlash against the larger payments. The checks, he said, would do “nothing” to help local businesses and get people back to work.
“We can do better,” he said.
Not everyone agrees with Brady.
For example, Jerome Powell, chairman of the Federal Reserve, has repeatedly commented on the need to combine central bank stimulus measures with spending on the orders of Congress.
The Fed, he explained in November, is using its credit programs to an “unprecedented degree.” But loans don’t always help.
“Many borrowers benefit from this [lending] programs, as does the general economy. But for many others, getting a loan that is difficult to repay may not be the answer, ”Powell said at a news conference.
“Direct tax aid may be needed. Elected officials have the power to pay taxes and expenses and make decisions about where we as a society should direct our collective resources,” he added. “The tax policies taken so far have made a critical difference to families, businesses and communities across the country.”
Stimulus Facts: How Do We Know The Way Stimulus Controls Can Be Spent? The US Census Bureau conducted a survey in June with some responses about how the first round of payments was used.
The majority of adults in households who have received a stimulus check from the federal government say they have used or planned to use most of it for household expenses. That means that the money will go back into the economy.
Meanwhile, 15.7% used their stimulus check to pay off debts and 14.1% planned to save most of it.
Of those who spent their checks, 80% said they used the money for food, while 77.9% used it for their rental mortgage and / or utilities, including gas, electricity, and the Internet. About a fifth said they spend the money on clothing.
According to the Census Bureau, 8.1% of respondents said they would or would spend the incentive on household items such as TVs, electronics, furniture and appliances or recreational goods such as exercise equipment, toys, and games.
The result: Economists see direct payments as a way to help protect the fragile recovery and prevent people from falling into poverty as the pandemic continues to rage in the United States.
The latest news about the virus is dire. The number of patients admitted with Covid-19 nationwide is the highest it has ever been, and at this rate, health experts are warning they may need to ration nurses, ventilators, and care.
The Boeing 737 Max is back
The Boeing 737 Max will carry U.S. passengers for the first time in nearly two years on Tuesday, when American will use the jet on a return flight from Miami to New York.
It will be some notable flights for the 737 Max, which ran aground from March 2019 to November 2020 after two crashes that killed 346 people. The flights come after the US Federal Aviation Administration approved changes Boeing made to the jet last month.
Not everyone is on board: A poll by Reuters / Ipsos on Monday found that 57% of Americans polled said they were unlikely to fly in a Boeing 737 Max when they were briefed on the plane’s history. About 37% say they are likely to fly in it if it has been in the air for six months or more.
American does not want to disclose how many seats it sold on Tuesday’s flights, a 10:32 a.m. ET route from Miami to New York’s LaGuardia airport, and a 2:30 p.m. return flight. But as of late Monday morning, the airline’s site showed only one main cabin ticket that was still available for the afternoon return.
Aviation authorities of most other countries have yet to approve the use of the 737 Max. But Brazilian airline GOL became the first airline to offer passenger flights earlier this month, and Aeromexico resumed plane flights between Mexico City and Cancun last week.
The problems with the 737 Max made 2020 a year to forget for Boeing. The company’s stock has lost about a third of their value since January 1.
Tesla may be coming to India
We’ve heard this before, but 2021 may just be the year Tesla will enter the world’s fourth-largest car market.
Indian Transport Minister Nitin Gadkari told CNN Business that Elon Musk’s electric car company will be selling vehicles there next year. Tesla will then look at production in the country, Gadkari added.
Tesla did not immediately respond to a request for comment. But Musk indicated on Twitter this weekend that sales would start in 2021.
The backstory: The CEO said in 2017 that Tesla planned to sell cars in the country all that summer. But the delay may have been well-timed.
Car sales in India fell sharply in 2019 as new security and emissions regulations pushed up prices and caused credit problems for Indian consumer lenders.
Next one
The S&P Case-Shiller Home Price Index will be published at 9 a.m.ET.
Available tomorrow: US Energy Information Administration releases report on crude oil stocks.