The $500 dame un is part of the U.S. government’s efforts to help citizens recover from the economic impacts of the COVID-19 pandemic. Through the Guaranteed Basic Income (GBI) program, also known as the stimulus check, the government aims to provide support to low-income individuals and families across various states, including California, New York, Michigan, Washington, and New Mexico.
This program is managed by the Internal Revenue Service (IRS) and falls under what are called Economic Impact Payments. These payments are a strategy to combat inflation. The primary goal is to offer direct financial assistance to those whose purchasing power has diminished, helping them cover essential expenses during the latter half of 2024.
Main goals of the $500 stimulus checks
The stimulus check program continues to evolve with the economic developments in the U.S., with assistance varying by state. Some of these programs are made possible by budget surpluses, while others are based on previous tax refunds or declared income.
These stimulus checks are designed to fulfill two key objectives:
- Help low-income households manage medical expenses.
- Mitigate the effects of inflation, which has increased the cost of living across the country.
Programs like these aim to provide ongoing support to families during a time of economic uncertainty, helping them maintain financial stability.
How the stimulus checks work in 2024
For example, in October 2024, 100 residents of Ann Arbor will receive monthly payments of $528 as part of a program aimed at supporting local small business owners and boosting the region’s economic activity. These payments are part of the Guaranteed Income Program, which also provides eligible citizens with $500 stimulus cards. These cards can be used for basic expenses such as gas, heating, rent, food, and water.
In California, 150 residents of Fresno County are also participating in a similar program, receiving monthly checks of $500 throughout the year. These payments come from both state and federal funding and are designed to support individuals at risk of economic exclusion.
Why is this economic stimulus necessary?
The COVID-19 pandemic caused an unprecedented disruption to the U.S. economy. Supply chains were severely affected, consumer spending decreased, and the Gross Domestic Product (GDP) fell by 3.4%, marking the largest decline since the Great Depression of 1929. As a result, many businesses closed, and millions of people lost their jobs, pushing the unemployment rate to a peak of 14.8% in April 2020.
To counter this economic devastation, the government approved several economic stimulus packages, which increased the national debt to $28 trillion. Of this, $5 trillion was allocated to keep the economy afloat through direct payments to citizens, like the stimulus checks. Despite these efforts, sectors such as tourism, hospitality, and retail were particularly hard-hit, and more than 200,000 businesses announced permanent closures by 2021.
Check the information: avoid falling for rumors
Rumors about potential new stimulus checks frequently emerge, often due to misunderstandings or exaggerations that circulate online. It’s important to remember that, as of now, there has been no federal announcement regarding new direct payments in 2024. Most deposits related to government programs depend on an individual’s situation, including income, work history, and eligibility for certain assistance.
To avoid misunderstandings, it’s always advisable to verify any information through official sources, such as government websites, or consult with a financial advisor before making decisions.
