London Daily

Focus on the big picture.
Tuesday, Nov 25, 2025

Analysis: Donald Trump is right: $600 is not nearly enough. But $2,000 isn't, either

Analysis: Donald Trump is right: $600 is not nearly enough. But $2,000 isn't, either

After months of failed negotiations and political feuding, Congress finally approved a $900 billion relief package this week, nearly nine months after the record $2.2 trillion passed in March, and against the backdrop of a country riddled with economic peril and surging coronavirus cases.

The bill would give most Americans $600 in direct stimulus payments, a cut in half from the initial stimulus checks in March. Single people who earn up to $75,000 would receive the full $600 direct payment, and couples earning up to $150,000 would receive $1,200.

The prospect of stimulus is both good and welcome news, considering the circumstances: Millions of Americans don't have enough to eat, are falling behind on housing payments or have had trouble paying their bills. Any amount is certainly better than nothing.

But President Donald Trump signaled he wouldn't sign the bill if Congress doesn't amend the legislation and raise the "ridiculously low" $600 stimulus checks to $2,000 or $4,000 per couple.

Democrats and economists largely agreed with Trump.

Massachusetts Rep. Ayanna Pressley described the latest round of stimulus in an interview with CNN on Monday as "survival checks," while President-elect Joe Biden struck a similar tone when he referred to the $600 checks as "down payments," citing the need for additional stimulus next year.

Economists argue that after nine months of waiting for another lifeline, the aid is not enough to cover basic necessities and past-due bills many families have accumulated over this difficult year.

"People are facing evictions, utility disconnections and continued struggles in the labor market dealing with the virus," said Olugbenga Ajilore, senior economist at Center for American Progress, a left-leaning think tank. "While a one-time check of $600 is better than nothing, it's woefully insufficient as relief, let alone as stimulus."

Many Americans agree with the president, too. People flocked to Twitter to chime in with their dissatisfaction and crude humor on the recent round of relief. It resulted in #LetThemEatCake and #600IsNotEnough to trend on the social platform on December 21.

'It's not enough'


Many of the Americans who have been hit hardest by the pandemic are drowning in months of overdue rent and piles of other expenses. More than 85 million adults, or 35.6%, live in a household where it's been somewhat or very difficult to pay for usual household expenses during the pandemic, according to the most recent Census Household Pulse Survey, which covers November 25 to December 7.

Several economists said that the one-time direct payment of $600 wouldn't be enough for those families and the unemployed, who may be in need of funds to buy groceries and make up missed payments and interest.

"Although the stimulus is a welcome and necessary development and will help on the margins, for many Americans it's too little too late and more help will be needed," said Tendayi Kapfidze, chief economist at LendingTree.

On the contrary, economists consider $2,000 checks to be "more helpful" for the millions of families in need. But they add that more than just a bump up in stimulus checks is needed.

"We need state and local aid," said Ajilore, citing the more than 1 million public sector jobs that have been lost as a result of budget shortfalls from the virus.

"We need an expansion of paid leave provisions along with child care funding as women and caregivers generally have suffered during this pandemic."

That's because an alarming number of women have been dropping out of the workforce, as the pandemic-fueled recession has hit women harder than any other past downturn. Roughly 617,000 women left the workforce in September, compared with only 78,000 men, according to government data.

Many economists also expressed the need for more Covid-19 stimulus in 2021. For example, the progressive nonprofit Economic Policy Institute estimates that roughly $3 trillion in relief is needed to "stop the economic bleeding caused by the coronavirus pandemic and build a strong recovery."

The organization also estimates that if Congress had reinstated the full $600 in unemployment payments, it would have created or saved 3.3 million jobs over the next year. It predicts the current $300 will only create half of those jobs, even if it was extended over an entire year rather than 11 weeks.

The potential for more stimulus next year depends on one major factor: the outcome of the Georgia Senate run-offs in January. Democrats landing a win and gaining control of the Senate could mean more stimulus is on the way in the new year.

"The strength of the economy and how long it takes is in Congress' hands and will be determined by how they act," said Heidi Shierholz, senior economist and director of policy for the Economic Policy Institute.

The economic recovery


As for the broader economy, some analysts say $600 stimulus checks fall short of the level of aid needed to stimulate the economy and reverse the economic damage inflicted by the virus — especially with a brutal Covid-19 winter ahead.

There are still nearly 10 million fewer jobs since the start of the pandemic. Retail sales dipped 1.1% last month from October, as many households are cutting back on spending. And coronavirus cases and deaths continue to rise, despite a second coronavirus vaccine.

"It will not curb the damage as $600 is not enough to mitigate months of economic pain," said Ajilore. "The biggest problem is that even with a vaccine, the virus spread is at its worst point during the pandemic and that has caused the economic problems."

The $600 direct payments, in total, will cost the federal government $166 billion. It's a $127 billion decrease from the $293 billion paid out earlier this year by the CARES Act, making up less than 1% of GDP, according to Kapfidze, who predicts the direct boost to the economy will be less than 1% growth.

"It's a small amount per family and will not do much to address the K-shape trend that the economy has taken," he said, referring to growing inequality between America's rich and the poor. "People in the highest income brackets are not seeing much negative impact to their financial situation, and in many cases are thriving. However, lower income groups are under the combined onslaught of lost jobs, risk of losing homes and higher incidence of the coronavirus."

On Wall Street, economists such as those at Morgan Stanley have a rosier view on the $600 stimulus, in part because the new stimulus package arrives at a time when the unemployment rate is significantly lower than the height of the pandemic, sitting at 6.7% in November, compared to the unemployment rate of 14.7% in April.

"The second round of support is less than the first but it comes at a time when we are further along in the economic recovery," said economists Sarah Wolfe, Ellen Zentner and Robert Rosener in a research note. "It will help support consumer confidence and incomes as we wait for a widespread vaccine."

Newsletter

Related Articles

0:00
0:00
Close
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
×