American Rescue Plan and the Effects of Stimulus Checks - New York City

In 2020, the COVID-19 pandemic caused mass devastation, drastically impacting the United States economy. As a result, despite severe political polarization the year before, the Biden administration attempted to make progress to ease the country into economic recovery by stimulating the economy which suffered an economic plunge at the fastest rate in its history. In March of 2021, the American Rescue Plan (ARP), a $1.9 trillion stimulus package, was passed by Congress and signed into law. Although major components of the ARP included extended unemployment benefits, emergency paid leave, expanded welfare, support for small businesses, additional funding, and various tax provisions, a crucial element of the plan was individual direct payments in the form of stimulus checks, making the ARP particularly unique. It is important to examine the effects of stimulus payments as well as improvements in healthcare, housing, and other areas. Using in-person fieldwork, online surveys, and the Pew Research Center’s Random Digit Dialing (RDD) method, this paper will be summarizing primary data from Americans nationwide to identify patterns that may exist between various socioeconomic groups, geographical regions, and similar demographics. Conducting evidence-based research, the paper will analyze correlational relationships between consumer spending, inflation, and unemployment due to fiscal policy.