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- A Morning Consult survey found that 34% of Americans will save the $1,400 stimulus checks expected to be distributed in the next wave of pandemic relief.
- A larger proportion of higher-income households said they will save the payments.
- Saving the checks will likely decrease debt and boost the economy, despite economists’ concerns.
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34% of Americans said they will save the next round of $1,400 stimulus checks that President Joe Biden is pushing Congress to pass, which will lower household debt and stimulate the economy.
In a survey conducted by Morning Consult, which was commissioned by Bloomberg, it found that compared to the first round of $1,200 stimulus payments, 11% more Americans plan on putting the third payment right into savings. Spending on food, housing, and credit card debt followed close behind, at 30%, 22%, and 18%, respectively, reflecting other priorities of Biden’s plan to provide increased food benefits and housing aid.
The survey also reflected a higher proportion of people in wealthier households who would save the checks instead of spending them, with 41% of households with an income over $100,000 saying they will save the next stimulus payment, along with 37% of households making between $50,ooo and $100,000 per year.
The debate surrounding who should receive the next $1,400 stimulus checks, however, remains ongoing, and in the House Committee on Ways and Means’ stimulus bill that is currently being marked-up, the $1,400 stimulus check has a proposed $75,000 income threshold, meaning that individuals making above that income will experience a phasing out of the payment.
In addition, the survey reported that respondents plan to use a portion of the next payments toward paying off credit card debt, student loan debt, rent, and mortgages.
Biden has indicated that unlike other economic recovery plans, his stimulus plan has the longer run in mind and is intended to provide benefits that will last long enough to aid struggling Americans. The survey said that a slow-burn stimulus would "spread out government support over time and avoid the kind of consumer spending stampede that's led some economists to warn of inflation risks."
And Federal Reserve Chairman Jerome Powell said in a speech on Wednesday that fiscal support from the government will not cause a sustained inflation increase, despite economists' concerns.
"Inflation has been much lower and more stable over the past three decades than in earlier times," Powell said.
The Ways and Means Committee is marking-up its portion of the stimulus bill this week before it heads to a full House vote.