The House of Representatives just approved a two trillion dollar stimulus package that will give many Americans $1,200. It is meant to ease the financial impact of the COVID-19 pandemic, which has closed thousands of businesses and cost millions of Americans their jobs and paychecks. If you’re familiar with the former Democratic presidential candidate Andrew Yang, you might find that this idea reflects one of his flagship beliefs: Universal Basic Income. Yang’s plan was to give each American $1,000 every month to spend as they wished. Though this stimulus package is likely a one-time deal, Yang himself said that his team was helping the White House make decisions about it.
Yang’s proposition and the current stimulus package still have a number of differences. For one, the stimulus package will only be distributed to Americans whose households make at most $99,000. The full $1,200 will only be distributed to those who make at most $75,000, and the amount will lessen as income increases. Families with children will receive an additional $500 per child. Yang’s plan would have included every American, regardless of income level, though it would only have been $1,000. To raise money for Universal Basic Income, Yang would have created a value-added tax on goods. The current stimulus package is unfunded.
Stimulus packages are not a new thing. We’ve had two in the 2000s–one in 2001 and one in 2008 for their respective recessions. However, this package is record breaking at two trillion dollars total. This number is so large it’s impossible to visualize, but it is the necessary amount for millions of Americans to stay afloat. Normally, there would be some sort of party divide over giving out money, which is something many Republicans would consider socialist. However, the vast majority of Republicans and Democrats agree that a stimulus package is completely necessary. Hopefully, this monetary boost–even if a one-time thing–will be extremely helpful to Americans who need it the most.