65.1 Percent of Kentucky Residents Spent Stimulus Funds on Necessities!

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The US economy is significantly stronger today than it was when the COVID-19 outbreak began two years ago.

Recent inflation has resulted in a salary increase for many workers, particularly lower earners, though the effect has been muted.

Stimulus Check

 

The epidemic of last year and its economic consequences exacerbated uncertainty and fear, with high unemployment and entire sectors of the economy closing.

The federal government responded in 2020 and 2021 with three large stimulus packages, providing unprecedented financial assistance to American consumers and businesses.

Economic Impact Payments (EIPs) to United States households were a defining feature of Congress’ economic relief efforts. The amounts and eligibility requirements for each package varied, but the majority of low- and middle-income families received $3,200 per adult, with additional funds available for families with dependents.

With numerous industries collapsing, these reimbursements were made to assist households in coping with lost wages or employment as a result of COVID-related disruptions.

 

The Value of $1,200 in Stimulus Checks Increased to $7,285

According to a July 2020 U.S. Census poll, the CARES Act payments aided many households significantly in managing their basic living expenses.

Around 150 million Americans used their stimulus packages to cover living expenses, far more than they paid down debt or saved.

Due to the economy being shut down in the spring and early summer of 2020, the federal government’s supplementary relief program aided families who would have struggled to make ends meet otherwise.

Despite the initial popularity of the CARES Act, subsequent rounds of stimulus payments drew increasing criticism. These skeptics predicted that widespread stimulus would provide wealthy households with more money than they needed, potentially resulting in inflation.

Certain economists and government officials advocated for more modest, means-tested transfers to the poorest families.

According to Census survey data, households with less need used stimulus payments differently than households with more need. Minority and low-income households were the most likely to use stimulus funds to cover living costs.

More than 75% (74.9%) of Black adults rely on stimulus checks for living expenses, compared to only 60% of White adults. Adults with household incomes less than $35,000 used stimulus funds nearly five times as frequently as adults with household incomes greater than $200,000. (15.7%). Reduced proclivity to pay off debt, save money, or purchase unnecessary items. Are You Eligible for a New $1,400 Summer Stimulus Payment From a $200,000 Pot That Is Expected to Be Approved Tomorrow? (1)

Given demographic and economic trends, the Southern United States had the highest proportion of adults spending their paychecks on necessities.

Eight of the top ten states for adult stimulation usage are in the South, including Louisiana (74.4 percent) and West Virginia (WV) (72.1 percent ). Four of the top five cities in metro areas were located in the South.

The Household Pulse Survey of the United States Census Bureau is used in this study. HireAHelper calculated the proportion of adults who reported relying on stimulus to cover living expenses in order to determine where residents were forced to spend stimulus checks.

Additionally, the researchers included data on how many people used stimulus funds to pay down debt or save.

According to the study, 65.1 percent of adults in Kentucky used stimulus funds to cover living expenses, 14.3 percent for debt repayment, and 8.6 percent for savings. The following is a summary of the Kentucky data:

• 65.1 percent of adults used stimulation to pay bills

Adults who are in debt: 14.3 percent

• Adults who saved through stimulation: 8.6 percent

• Adults who are not exposed to stimuli: 11.9

Across the United States:

• Adults who paid bills with stimulus: 63.9

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Adults who are in debt: 12.0 percent

• Adults who saved through stimulation: 9.4 percent

• Adults who are not receiving stimuli: 14.7%

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