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Americans begin receiving $600 stimulus checks

Retail federation economist says federal relief measure signed into law last week will help recovery

Ron Ruggless, Senior Editor

January 4, 2021

2 Min Read
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Americans have started receiving $600 stimulus checks, depending on income levels.Tim Graham / Stone

Americans have begun receiving $600 stimulus checks after Congress worked — but failed — to raise the amount to $2,000 per person in a last-minute holiday effort.

President Donald Trump after Christmas signed the $900 billion pandemic relief measure, which included stimulus checks as well as a second tranche of Paycheck Protection Program, or PPP, that had served as a lifeline for many restaurants in the summer.

Trump, before signing the bill, had complained the $600 was too low, so the U.S. House of Representatives on Jan. 28, in a 275-134 vote, passed a measure to increase stimulus checks for those under certain income level to $2,000.

Senate Majority Leader Mitch McConnell (R-Ky.) blocked requests to consider the $2,000 measure in that chamber before the 116th Congress adjourned Sunday.

Jack Kleinhenz, chief economist for the Nation’s Retail Federation, said economic challenges brought on by the coronavirus pandemic, which was declared in March, would continue into this year, although he said the relief measures should help maintain the ongoing recovery.

“Recoveries do not proceed in a straight line,” Kleinhenz said in the trade group’s Monthly Economic Review for January,  “and the prospects for volatility over the next few months are high. Nonetheless, just like the old Timex watch commercials, the economy takes a licking but keeps on ticking.”

The $600 stimulus payments should boost spending, he added.

 “Consumers responded quickly to last spring’s stimulus checks, and distribution of the new checks will come at a critical time that will help carry 2020’s momentum into 2021,” Kleinhenz said.

The legislation signed by Trump on Dec. 27 will provide one-time $600 stimulus checks to individuals making up to $75,000 a year and extends $300 weekly checks for the unemployed for almost three months.

Kleinhenz said that aid is particularly important to low-income families and the unemployed.

Retail sales for the first 11 months of 2020 (excluding automobile dealers, gasoline stations and restaurants) were up 6.6% over the same period in 2019 and November’s year-over-year increase of 8.8% put the holiday season on track to meet NRF’s forecast of between 3.6% and 5.2% growth, the NRF report said.

Results for the full holiday season will be released with the Jan. 15 Census Bureau report of December data.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

About the Author

Ron Ruggless

Senior Editor, Nation’s Restaurant News / Restaurant Hospitality

Ron Ruggless serves as a senior editor for Informa Connect’s Nation’s Restaurant News (NRN.com) and Restaurant Hospitality (Restaurant-Hospitality.com) online and print platforms. He joined NRN in 1992 after working 10 years in various roles at the Dallas Times Herald newspaper, including restaurant critic, assistant business editor, food editor and lifestyle editor. He also edited several printings of the Zagat Dining Guide for Dallas-Fort Worth, and his articles and photographs have appeared in Food & Wine, Food Network and Self magazines. 

Ron Ruggless’ areas of expertise include foodservice mergers, acquisitions, operations, supply chain, research and development and marketing. 

Ron Ruggless is a frequent moderator and panelist at industry events ranging from the Multi-Unit Foodservice Operators (MUFSO) conference to RestaurantSpaces, the Council of Hospitality and Restaurant Trainers, the National Restaurant Association’s Marketing Executives Group, local restaurant associations and the Horeca Professional Expo in Madrid, Spain.

Ron Ruggless’ experience:

Regional and Senior Editor, Informa Connect’s Nation’s Restaurant News and Restaurant Hospitality (1992 to present)

Features Editor – Dallas Times Herald (1989-1991)

Restaurant Critic and Food Editor – Dallas Times Herald (1987-1988)

Editing Roles – Dallas Times Herald (1982-1987)

Editing Roles – Charlotte (N.C.) Observer (1980-1982)

Editing Roles – Omaha (Neb.) World-Herald (1978-1980)

Email: [email protected]

Social media:

Twitter@RonRuggless

LinkedIn: www.linkedin.com/in/ronruggless

Instagram: @RonRuggless

TikTok: @RonRuggless

 

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