London Daily

Focus on the big picture.
Saturday, Mar 21, 2026

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
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
×