Billions for corporations, $600 for peasants

Investment Watch Blog
December 20, 2020

With the latest, $900 billion covid-stimulus deal now done (which unless the Democrats win the Georgia Senate runoffs in 2 weeks will be the final covid stimulus bill according to Goldman), attention turns to what’s actually in it.

First: the good news – the bill will include a fresh round of benefits for small businesses as well as the usual one-time pittance for peasants, amounting to a $600 check. Here are the key components:

• Direct payments of $600 to most Americans ($600 per adult and $600 per child); the amounts decrease for individuals with more than $75,000 in income and $150,000 for couples.
• $300-per-week in enhanced unemployment benefits through March. Expiring programs for gig workers and the long-term unemployed also would continue.
• $284 billion for the Paycheck Protection Program that provides grants forgivable loans to small businesses, arguably the most successful and also most abused program of the CARES act. This represents the bulk of the $325 billion the bill puts toward small businesses

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