There are high chances people living in these states might be receiving a $500 stimulus check in the next one week. This new program has been supported by both federal and state governments to help reduce the pressure of finances for many families up to date due to the COVID-19 pandemic.
This is an IRS-led project that forms part of a larger group of strategies that have been termed Economic Impact Payments. They are mainly focused on people and households of a lower to middle income status who have suffered most from the inflation and other COVID-19-related economic challenges.
How will the stimulus checks be distributed?
These stimulus checks will be in the form of 2024 stimulus cards that will continue being issued through the later years. These will be prepaid cards through which the recipients will be able to withdraw the $500 for expenditures in gasoline, rent, heating utensils, foods, water, etc. essentials.
For example, in California, approximately 150 people in Fresno County will be selected in the Guaranteed Income Program. The inhabitants of these states will be given $500 every month, with the requisite funding coming from both the state and federal levels. Scholarships and grants for students are planned to start in August 2024.
Similar initiatives in other states
The American state of Michigan has also followed a similar policy of launching a similar scheme in an Arbor where 100 residents will be paid $528 every month starting from August 2024. This is under the Guaranteed Income Program, which has a mandate to assist small business persons and the self-employed in the country as they overcome some of the hurdles that affect their businesses and nurture their enterprises.
This program has been implemented mainly by the Poverty Solutions team formed by the University of Michigan. People want the local economy to be boosted and the money to be provided for the representatives of the most needful category.
Why is a new $500 stimulus check needed?
The current outbreak of COVID-19 had severe repercussions on the economies of many countries, including the United States of America. Besides that, owing to extensive business shutdowns and strict preventive measures such as lockdown, there was a drastic increase in the unemployment rate, reaching 14.8% in April 2020. Also, some 22 million people are out of work, and probably around 200,000 firms have shut down before 2021.
But that was not the end of it; the effects of the pandemic were not only seen in job losses. The following issues had a bearing on the country’s economic growth: supply chain disruptions and reduced purchasing power, which pulled the GDP down by 3.4%, which is the highest level since the Great Depression of 1929. Specifically, areas like tourism, hospitality, and retail were worst affected.
Consequently, the U. S. government pumped a record $5 trillion in stimulus to beef up the sinking economy in a move that helped avert total collapse. But still, recovery has not been balanced and many ordinary citizens are to this day experiencing difficulties regaining their financial position.
How the $500 stimulus check helps families move forward
This new $500 stimulus check has been engineered to address the above-mentioned problems. To many of them, this financial assistance constitutes a primary form of support that enables them to meet the bills and sustain themselves in the unpredictable economic climate.
Further, the constant basic income that is being piloted in California and likewise in Michigan instills in families the basic structure of income security that enables them to visualize their future based on the available income. These programs are not only beneficial in dealing with close-ended expenses but also act as a platform to develop long-term plans for small changes/improvements or expansion of business, which in turn is beneficiary for the local economy in a recessive manner.
What to expect in the future with stimulus programs
Though the $500 stimulus check is just that, the kind of programs that such stimulus attempts could become more pronounced in the future, especially if the economy again hits serious rough weather. Elections for example, have recently featured proposals for basic income to the public and it has the potential of becoming a reality in the next few years.
Nevertheless, one thing is obvious and it’s the fact that the U. S. government is willing to try out various approaches that would enable people to deal with economic challenges which are crucial in the light of their living standards and that of other those who are in more disadvantageous position.
FAQs
Q. How will the stimulus checks be distributed?
A. These stimulus checks will be in the form of 2024 stimulus cards that will continue being issued through the later years.
Q. Is this $500 stimulus check needed?
A. Yes, because it will help people who have low incomes fight against the financial and economic crisis.
Q. What to expect in the future?
A. This kind of programs that such stimulus attempts could become more pronounced in the future, especially if the economy again hits serious rough weather.