Government assistance is a heavily debated topic. Should the government bailout individuals or companies? How far is far enough? We need to discuss questions like this when we look at the H.R.1319 – American Rescue Plan Act of 2021- also known as the second pandemic era stimulus bill. In this article, I examine two components of the bill and argue that the stimulus bill has not gone far enough.

Most of our attention on this bill is focused on stimulus payments for individuals – granting millions of Americans a much-needed cash infusion. This new package would give individual Americans making under $75,000 a one-time check of $1,400. This amount is doubled for a couple making under $150,000 a year, with each dependent receiving $1,400. These benefits decrease to zero as we get closer to the earnings cap of $80,000 for individuals and $160,000 for couples.

Is this enough? To many people struggling with paying their rent the answer is dependent on where someone lives. In Wichita, KS the average rent is $685. This is half the national average rent cost of $1,392 in January of 2021. The financial relief of this one-time check has the lowest impact on those living in urban areas with higher costs of living. In New York City, the median cost of living is $2,700 for a 2 bedroom. The relief granted to New York City residents is not proportionate to that of residents of rural areas of the country.

The bill also extends the enhanced unemployment benefits for an additional 24 weeks. This would extend benefits until the end of August. The original bill passed by the U.S. House of Representatives asked for $400 per week. However, due to opposition from some Democratic Senators, the benefit was reduced to $300 per week. For most people, $300 is not enough money to pay for common weekly expenses.  At $1,200 per month, compared to the first stimulus bill, this is half as much. This weekly PUA check should be universal. It should be given to Americans who are near or below the poverty threshold. The main argument against this type of injection into the economy is that it will cause inflation. Studies have proven that giving out money to those in need does not have lead to significant changes in prices. This gives people a safety net to explore new job opportunities.

One thing missing from this bill is the minimum wage increase on the federal level. The federal minimum wage has not moved from $7.25 an hour for a decade. This lack of movement is a reason for people needing more assistance during this pandemic. With a majority of adults not being able to afford a surprise $500 expense the pandemic proved to be a challenge they were not prepared for.

The pandemic did not create many of the issues that resulted from it. It did not create the issues that we have in our core institutions. It did however exacerbate them. We cannot blame issues such as unequal access to reliable healthcare, educational resources, livable job benefits. This stimulus package is a far cry from what people are asking for. It does not meet the requirements of what they need. Giving money to individuals without changing the system that led to them being in a situation where they cannot afford enough to provide for their family is a bad policy.

Therno Diallo is a senior at Hunter College pursuing a major in Economics with a Certificate in Public Policy. A Guinean-born naturalized citizen, Diallo is currently working as a youth leader at the YM & YWHA. After graduating in Fall 2021, he plans to continue to further his education and continue helping his community. His goal is to become a member of the New York City Council.