Second Stimulus Check Update: Everything You Need To Know || Latest Update (May 7, 2020)

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Two House Democrats want to enhance the $ trillion stimulus package known as the CARES Act. Representatives Tim Ryan (D-OH) and Ro Khanna (D-CA) have introduced new congressional legislation — the Emergency Money for the People Act — to provide $2,000 per month to Americans who have been impacted by the COVID-19 pandemic. Under their proposed legislation, the congressmen would continue monthly cash payments to eligible Americans until employment returns to pre-COVID-19 levels. “A one-time, twelve hundred dollar check isn’t going to cut it,” Rep. Khanna said. “Americans need sustained cash infusions for the duration of this crisis in order to come out on the other side alive, healthy, and ready to get back to work.”

An idea that is sure to get attention during the 2020 primaries is “a guaranteed federal job,” a proposal The New York Times noted was “a big idea from a bygone era.”1 It’s easy to see why people are interested in ideas that help people earn a good life, but how would this specific policy work in practice and what kind of effect would it have overall on the economy?

Some, like Stony Brook University Professor Stephanie Kelton, a former advisor to Senator Bernie Sanders and proponent of the federal jobs guarantee, argue that bringing millions more into guaranteed federal jobs would lead to more buying power and contend that “it’s clear the economy as a whole does far better, and that means that the private sector does far better.”

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