KANSAS CITY, MO. – This week, many people in the Kansas City area will see third stimulus payments on bank accounts.
Experts predict the U.S. economy will grow about 6% this year thanks to the $ 1.9 trillion stimulus package and rapidly increasing COVID-19 vaccination rates. Economists expect retail sales to surge again this month, as it did in January, when the latest economic tests hit.
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However, this third round of payments differs from other stimulus checks Americans received over the past year.
The difference this time around is that the payments are bailouts rather than incentives as not everyone receives a check.
Individuals earning up to $ 75,000 will receive the full $ 1,400, as will married couples earning up to $ 150,000. The size of the check would shrink for those earning a little more, with a hard limit of $ 80,000 for individuals and $ 160,000 for married couples.
Experts say the payments are targeting lower-income workers hit by the recession because they are more likely to spend the money quickly on necessities like sheltering and food.
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“I suspect the majority of the people receiving this money are likely to have pretty urgent needs,” said Chris Kuehl, economist and chief executive officer of Armada Corporate Intelligence. “They’ll want to catch up on things like mortgages, rent, medicines, and groceries. That kind of thing.
“From then on, they’ll start thinking about what else I can do with this money. I don’t think you’re going to get a lot of discretionary spending. You’ve gotten more of this in the last few laps, but this time it’s going to be a little more on-demand. “
Kuehl said don’t expect a lot of big ticket purchases.
He said the average consumer spends about $ 2,000 every few weeks to get their daily needs, so $ 1,400 may not go very far.
Economists expect people in the Midwest to be more likely to try to save some money.
While the aid is expected to help many in financial distress, the government faces a difficult task to pay for it. Tax increases and spending cuts are likely to dominate the political discussion at the end of the year.
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