Johnson makes case against stimulus checks
U.S. Sen. Ron Johnson (R-Wis.) delivered remarks on the Senate floor last week objecting to another round of stimulus checks using the same shotgun approach as the CARES Act rather than instituting reforms to better target Americans who need relief. The senator further laid out the important data Americans and Congress should be aware of to ensure that American taxpayers’ money is used in an appropriate way to help those in need.
Following are some points from his speech.
Employment levels before and throughout pandemic: -- 3.5 percent unemployment rate and 158.8 million people employed in December 2019.
-- 133.4 million people employed in April 2020, a reduction of 25.4 million people.
-- 149.7 million people employed and 6.7 percent unemployment rate by the end of November, meaning 9.1 million remaining unemployed when compared to December 2019 data.
CARES Act stimulus checks and their usage: -- $275 billion sent to 166 million people/$1,673 average stimulus check amount -- Checks sent to 115 million households for about $2,400 per household.
-- 4.5 times more households received stimulus checks than the number of jobs lost in April 2020.
-- Under the Hawley/Sanders proposal, 12.6 times more households would receive stimulus checks than the number of jobs remaining lost relative to April 2020.
Federal Reserve Bank of New York Survey of Expectations results: -- 29 percent of stimulus checks and unemployment benefits were used for spending and 71 percent were used equally for savings and debt repayment.
If a second round of stimulus checks, 24 percent would be used for spending and 76 percent for savings and debt repayment.
Government spending and national debt: -- Congress passed over $3 trillion in coronavirus aid in March 2020, equal to 15 percent to 16 percent of last year’s GDP.
-- National debt is now at $27.4 trillion, about 128 percent of last year’s GDP.
-- The bipartisan deal being negotiated would put the national debt at $28.4 trillion, about 132 percent of last year’s GDP.
