Stimulus checks: Financial planner warns of potential long-term impacts

The first stimulus check of the pandemic came last Spring for most, another just after the new year and now a third check could be coming if Congress passes President-elect Joe Biden’s proposal for additional $1,400 checks for many Americans.

Those three stimulus checks come with a mixed reaction, as some say they are much needed for people struggling with making ends meet, while others say there could be some long-term financial impacts for Americans.

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Times are financially tough for Dayton resident Joanne Monie, who has relied on help from family and the government to pay bills as the coronavirus pandemic has a grip on the Miami Valley. That’s why she supports Biden’s most recent proposal for $1,400 stimulus checks.

“We have to live for today, now,” Monie said. “Tomorrow is not promised, we have to do what we can do.”

Biden’s package proposal includes designating more than $1 trillion to people in need of financial help and that money will add to the U.S. debt.

“Our interest rates will go up, then you’ll probably see inflation go up and then the dollar devalue so there are definitely longer term problems as a result and this particularly package, Mr. Biden has said he does not want to cut spending or do additional taxes, just add to our debt,” said Barry James, President and CEO of James Investment Research in Greene County.

“There is always a price to pay, there is no free lunch,” James said, adding that it could eventually result in higher taxes in the future.

If the rescue package does pass Congress and more checks go out, “Pay off your most expensive debts, then after that pay your mortgage or rent, and then anything left after that, put it away for a rain day because it looks like we will have plenty of those in 2021,” James said.

However, some believe the possible long-term effects are worth it if it means helping their neighbors today.

“There’s a lot of other spending that we do, and people never question it...like our military budget is really large, but people always have a problem when we spend our tax dollars on help American people,” Dayton resident Tom Norton said. “I am okay with it, we can find other areas where we can cut our budget.”

Senate Minority Chuck Schumer, who will become the Majority Leader once President Biden is Inaugurated next week and two newly elected Georgia Senators join Congress, said passing legislation with the stimulus checks is one of the first things he wants the Senate to do in the new term.

Cox Media Group