The one-time payment simply isn't enough depending on the duration of a lockdown and slower business, according to Bloomberg Economics' Andrew Husby. Other analysts, including Claudia Sahm, a former economist at the Fed, say it'll be necessary to send multiple rebates over the course of many months of the downturn.
The payment amount doesn't apply to those making more than $75,000, just above the nation's median household income. That could prove limiting as many technical, manufacturing and technology positions are cut and those workers find a smaller safety net.
Speed remains a key question, as millions of workers have lost jobs in recent weeks and require those checks to pay rent, make mortgage payments at the beginning of April and satisfy ongoing credit-card, auto, student-debt payments, as well as afford other daily costs.
Trump indicated the checks would go out by April 6, according to Senate Democratic leader Charles Schumer, but during the prior recession, it took about two months for those to go out.
Under the agreed language, unemployment insurance would be extended by four months, the benefits would be bolstered by $600 weekly and eligibility would be expanded to cover more workers.
That would help address a surge in joblessness unprecedented since the Great Depression. Unemployment-insurance claims are projected to skyrocket to 1.5 million for the week ended March 21, after not long ago touching a half-century low, according to a survey of economists by Bloomberg. Forecasts are as high as 4 million.
But this income usually accounts for 50% or less of an employee's regular pay, so it doesn't offset the income loss, Bloomberg Economics' Husby says. Also, many state websites administering claims have been slow amid overwhelming traffic, so some Americans may be waiting longer than normal to receive funds.
Corporations and state and local governments get about $500 billion in assistance. Large firms -- those with 500 or more employees -- account for roughly half the private U.S. workforce, according to the ADP Research Institute. States disperse much of the healthcare spending. This component was one of the more contentious in discussions between Democrats and Republicans.
About a quarter of private U.S. jobs are in firms with fewer than 50 employees with a similar share at midsize firms, according to ADP. They've been among the hardest hit so far with retail and restaurant closures so any support for them is key to holding up the broader economy.
Top executives at Jefferies Financial Group Inc. suggested that the government should guarantee loans for companies so they can retain and pay their workers throughout business disruptions. The bill includes more than $350 billion in loans to small business.
Amherst Pierpont Securities economist Stephen Stanley, who broadly saw small firms as well-covered in the bill, said in a note to clients Tuesday that "there are a lot of difficulties in vetting applicants, but getting money out the door quickly will be vital to keeping small businesses alive and hence keeping workers employed."
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