ROCKINGHAM — Lawmakers on Wednesday approved a $2 trillion stimulus package that could provide much-needed assistance for America’s economy during the coronavirus pandemic.

The Senate passed the bill 96-0. A similar result is expected when the House of Representatives votes on Friday.

The stimulus plan would provide $1,200 for single individuals earning up to $75,000. Married couples with incomes up to $150,000 would receive $2,400, and they’d be given an additional $500 per child.

According to the 2013-2017 American Community Survey, an estimated 81.3 percent of 18,371 households in Richmond County reported incomes of less less than $75,000.

So a large chunk of Richmond County’s population would be in line to receive some financial relief. That would bolster the economy in various ways, according to Barry O’Brien, dean of the University of North Carolina at Pembroke’s School of Business.

“It will put money in the pockets of people who will spend it,” O’Brien said. “It will provide needed relief.”

And at that point the question won’t always be if recipients spend their money, but rather when they spend their money.

Strained supply chains, shuttered factories and travel restrictions will make it difficult for customers to purchase what they want as soon as they receive their checks.

“A lot of things we want to spend our money on, we won’t be able to buy,” O’Brien said.

Because of that, O’Brien said, there’s going to be some “pent-up” demand when stores re-open their doors once the coronavirus pandemic is over.

But not everyone’s going to be spending their money.

Uncertainties about the future — and issues related to employment, finances and health — could steer individuals toward saving their money rather then spending it, O’Brien said.

And that lack of spending could contribute to a number of problems, including America’s skyrocketing unemployment rate.

The stimulus package also provides large boosts for unemployment benefits, food assistance program and federal loans, among other things. The package includes a $500 billion Treasury loan program that will help businesses affected by the coronavirus pandemic.

Hospitals, airports and airlines — all three of which have taken big hits from the recent economic downturn — are set to receive financial assistance. The package provides about $117 billion for hospitals, and $32 billion for the airline industry.

Long-term effects

“This is unprecedented — both in the scope of the pandemic and the size of the spending bill,” O’Brien said.

Because of that, it’s difficult to make assertions about the future of the economy. But, O’Brien said, we should be prepared for higher taxes and fees in the future. That is a consequence of the stimulus bill.

But that’s not an immediate concern.

“You’re not going to raise taxes, because you want people to be spending money,” O’Brien said.

Barry O’Brien dean of The University of North Carolina at Pembroke’s School of Business…

O’Brien Gunnar Rathbun/AP Images for Walmart Shoppers may have to wait until supplies are back up before spending their stimulus checks.
https://www.yourdailyjournal.com/wp-content/uploads/2020/03/web1_obrianbarry_ne2018724151248965.jpgO’Brien Gunnar Rathbun/AP Images for Walmart Shoppers may have to wait until supplies are back up before spending their stimulus checks.

By Brandon Tester

Staff writer

Brandon Tester can be reached at [email protected] or 910-506-3170. Follow him on Twitter @BrandonTester.