Stimulus doesn’t go far enough

To be clear, $2.2 trillion is welcomed. But it’s not enough.

Working Americans got $290 billion, or 13%, of that $2.2 trillion. If economists say that consumer spending — over two-thirds of which is on services such as housing and health care, and over one-fifth on nondurable goods such as food and clothing — makes up 70% of the U.S. economy, then consumers should have received 70% of that $2.2 trillion, or roughly five times more than they are getting.

The Federal Reserve says 40% of Americans don’t have $400 in the bank for emergency expenses, and 17% of adults said they are not able to fully pay off all of their current month’s bills.

Some 50.8 million households can’t afford a basic monthly budget for housing, food, transportation, child care, health care and a monthly smartphone bill, according to an analysis of U.S. government data released by the United Way Alice Project.

According to a May 16, 2018 story on cnbc.com, the average amount Americans have socked away for the future is just $84,000. A 2018 study by Northwestern Mutual says 21% of Americans have no retirement savings, and an additional 10% have less than $5,000 in savings.

So, who’s in greater need of a stimulus? Business is important, but if consumers can’t pay their bills, 70% of the economy is doomed. And a one-time $1,200 check ain’t gonna cut it.