Mark Cuban wants the government to give you a $1,000 stimulus check every two weeks.
Here’s what you need to know.
The billionaire entrepreneur, Dallas Mavericks owner and Shark Tank star shared his perspectives in a series of tweets that he referred to as “trickle up economics.” As Cuban explains, the Payment Protection Program was a “great plan,” but “didn’t work.” Why? Cuban tweeted that consumer demand – not loans – is the best way to save businesses and jobs.
Cuban says we need a transitional jobs program that trains and hires millions of people “for a federal tracking/tracing/testing program.” He believes that this will help create stable jobs and reduce unemployment.
So, how does this relate to stimulus checks? This transitional jobs and training program will take time to build, so Cuban would institute an interim stimulus program that would work like this:
- All 128 million households could get a $1,000 stimulus check every two weeks
- The stimulus check would be given for the next two months.
- Here’s the kicker: the stimulus checks are “use it or lose it.”
- You must spend your entire stimulus check within 10 days of receipt, or it expires and you lose your stimulus check.
At a cost of about $500 billion, Cuban says that a bi-weekly stimulus check that you must spend will increase demand for non-essential services and products, which help keep businesses afloat. Interestingly, the “use it or lose it” component directly ties the stimulus check to consumer spending and consumer demand.
Stimulus Checks: A Comparison
How does Cuban’s plan for stimulus checks compare to other proposals? There have been several proposals for a stimulus check, including, among others:
- CARES Act: The CARES Act provided a one-time stimulus check up to $1,200 for individuals, $2,400 for married couples and $500 for dependents.
- Andrew Yang: Yang, a former 2020 presidential candidate, proposed a universal basic income plan that would provide $1,000 a month forever to every American 18 and older.
- $2,000 A Month Stimulus Check: There have been several proposals for a second stimulus check, including a proposal for a second stimulus check for $2,000 a month.
- HEROES Act: The HEROES Act, which passed the House of Representatives, would provide a one-time stimulus check up to $1,200 for individuals, $2,400 for married couples and $1,200 for dependents (up to three dependents).
The stimulus checks to date (both in the CARES Act and various proposals) have all included income limitations, meaning higher-earning Americans would not be eligible to receive a stimulus check. Based on Cuban’s tweets, all 128 million families would be eligible to receive the stimulus check. There wouldn’t be any income limits, for example. However, there wouldn’t be any additional payments for family size, including dependents, such as in the CARES Act or HEROES Act. Unlike previous stimulus checks, Cuban’s plan would require you to spend your stimulus check in 10 days. The goal is to stimulate the economy and to help businesses. In contrast, the other stimulus checks (while they also might have a similar affect), arguably are intended to help Americans afford basic necessities in the wake of the COVID-19 pandemic.
Will there be a second stimulus check?
The HEROES Act is the latest legislation to include a stimulus check, although it is a one-time stimulus check much like the CARES Act. Don’t expect a $2,000 a month stimulus check any time soon. Why? The HEROES Act doesn’t even include a monthly stimulus check, and it is unlikely to pass the Senate and become law in its current form. There is also other legislation in Congress that would support a monthly stimulus check. However, there currently is not wide-scale bipartisan support. That said, it’s possible there will be a second stimulus check, but if there is, it will most likely be a one-time stimulus check.