Burden Of Unemployment Increases As Congress Fails To Execute Second Stimulus Package

second stimulus package
second stimulus package

Since the official end date of the first stimulus package on the 31st of July, more than two months have passed. Yet, Congress is nowhere near to the final deal of the second stimulus package.

The coronavirus pandemic has caused a lot of damage to the nation, especially small business owners, and the unemployed. The government had issued the CARES Act for the aid of the public back in March. This provided stimulus checks as an economic aid to the eligible people. The weekly $600 checks were a great help for the public, some of whom even used that money to save up for the future.

Unemployed Hit Hardest With No Second Stimulus Package Within Sight

However, the nation now stands at a juncture where the economic aid has been lifted away from them for more than two months without any alternative called the second stimulus package. The pandemic hasn’t been easy these months. Rather, according to reports, danger still prevails as Covid-positive numbers still keep rising and companies and individuals still struggling to cope with the huge loss they have incurred these past few months.

News from Washington suggests that there might not be a second stimulus package before the November Presidential Elections. House Democrats and Republicans continue to negotiate the draft deal, without any official promise of agreement.

Studies conducted by the University of Chicago and JP Morgan & Chase Institute suggest that the savings made by individuals when they received financial aid from the government during the 1st quarter of this year is rapidly running out as the Congress makes more delay in passing the second stimulus package. This leaves around 80,000 unemployed people, whom researchers surveyed, at grave risk.

With Jobs Lost, People Looking Forward To Unemployment Benefits

Thousands of people have been laid off from jobs amidst the coronavirus pandemic. Businesses unable to support staff are downsizing their employees. But this doesn’t come without consequences. More and more people are filing for unemployment in the US every day. With these numbers increasing, more and more of American public are eagerly waiting for the second stimulus package deal on the table.

Small businesses are finding it difficult to reopen as the pandemic has forced people indoors. Without customers to support small businesses that run on a day-to-day basis, they are increasingly finding themselves into deeper trouble without any aid from the government.

The study conducted by the two institutes also show that people were able to save a little money from the earlier stimulus checks. These savings are being used by people to bolster the downturn. However, people who were surveyed now claim that the padding is wearing out.

With a slow job growth, continuing layoffs, and 1.3 million unemployment claims in the past week, the nation is anxiously looking forward to the second stimulus package.