July 2nd Is Pivotal If You Want A Second Stimulus Check

When Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act, they quickly made the decision to send millions of Americans a check for $1,200. However, for a second stimulus check, the choice hasn't been as simple. The House of Representatives approved the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which calls for another $1,200 check, but the Senate does not plan on passing it. Instead, they are debating what should go in another relief package. Some politicians want to see monthly checks while others want no check at all and would prefer a tax cut.

As they go back and forth over what should be included, what happens on July 2nd will be pivotal in their decision making. On that day, the next jobs report comes out. The report illustrates the unemployment numbers and helps show the strength of the economy. If things are looking good for America, with the economy rebounding and more people back to work, the politicians might be less likely to call for another stimulus check. On the other hand, if more people are out of jobs, it just might be the evidence some Senators need to see that another stimulus check is necessary.

Either way though, the report might not be the most accurate indicator since it doesn't give the full picture. Many workers were put back on the payroll because of the Small Business Administration's Paychecks Protection Program (PPP), which was just extended. There is no way to tell if more Americans have jobs because of the program or because companies are once again thriving - we would have to wait until the PPP runs out to see that.

Meanwhile, states have paused re-opening because of a resurgence of COVID-19. That means there might be another wave of unemployment ahead too - something that won't be reflected in the new jobs report but something politicians should definitely keep in mind.

July 2nd might give more insight on another stimulus check, but whatever is included in the relief package, Americans almost definitely won't get any of it until the end of the month at the earliest.

Photo: Getty Images