Americans To Get Another Stimulus Check But US Economy Not On A Downward Spiral, Says Kudlow

Given the severe impact of the coronavirus pandemic on the U.S. Economy, the White House economic adviser, Larry Kudlow has announced that the Americans will be getting $1,200 stimulus checks in the next round of relief legislation. But many disagreements concerning the same has cropped up recently, especially by Republicans who are against the proposal.

"There's a $1,200 check coming, that's going to be part of the new package," Kudlow said in an interview on CNN's State of the Union on Sunday.

"The check is there, the reemployment bonus is there. The retention bonus is there," Kudlow said explaining how the relief bill will be unveiled in steps on July 27. "There will be breaks, tax credits for small businesses and restaurants."

But even as the U.S. government is pushing for yet another stimulus check, Kudlow stressed that it is not an effect of the U.S. economy still reeling from the effects of the rising COVID-19 infections. "First off, I don't think the economy is going south, I think it's going north," Kudlow said. "And I think there's a bunch of indicators," he added, naming the positive growth in housing, retail sales, the auto industry, and manufacturing.

According to Kudlow, the “the odds favour a big increase in job creation and a big reduction in unemployment”. He further defended that "most economists" suggest "that we are in a self-sustaining recovery.”

"On the whole, the picture is very positive and I still think a V-shaped recovery is in place," he said, adding that he is certain of 20 to 30 percent of growth in the third and fourth quarters of 2020.

Treasury Secretary Steve Mnuchin has also talked about Americans getting $1,200 payment after he met with Mark Meadows, President Donald Trump's acting Chief of Staff and GOP staff at the Capitol. As per Mnuchin, the amount will be distributed the same way the $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, was passed in March 2020.

But even though the new stimulus is still in limbo, many Republicans like several prominent GOP lawmakers, including Senators Ted Cruz of Texas, Rand Paul of Kentucky and Ron Johnson of Wisconsin, have already disagreed regarding how to proceed with it.

"Sen. Cruz has said that when it comes to CARES II, as the package currently stands, he's a 'hell no.' As he explained earlier this week, the answer to solving our economic crisis shouldn't be spending trillions and trillions of more money we keep borrowing from China," a spokesperson for Cruz told Newsweek.