The recently adopted $1.9 trillion American Rescue Plan has perplexed analysts. According to member of the Board of Directors at FinExpertiza, Agvan Mikaelyan, stimulus payments will have a transitory positive effect on the US economy. The analyst reckons that it would be more effective to direct all the funds to combat COVID-19. The total size of the stimulus package, $1.9 trillion, is a hefty sum of money that should be properly distributed. The primary objective of the US government is to mitigate the impact of COVID-19. Instead, large funds will now be allocated to support American families and maintain consumer spending, thus disturbing the balance, Mikaelyan underlines. An increase in consumer spending will only produce a temporary effect. Meanwhile, cash injections aimed at mitigating the negative consequences of the pandemic will bring about long-term positive changes, the expert says. The payment of $5,600 for an American family of four with an average annual income of $100,000 is regarded as a transitory stimulus measure. This will help households stay aloft. At the same time, the analyst believes that Americans will use a lion’s share of these funds to build up savings or make investments in the stock market. Mikaelyan supports the idea of differentiation of incentives. He considers it appropriate to distribute funds depending on average household income. The lower the income of a particular family is, the higher the payment should be, and vice versa. High-income households do not need financial support, the expert emphasizes.
