Monthly spending after COVID-19 stimulus payments U.S. January 2021, by income

In December 2020, the United States Congress signed into effect the COVID-Related Tax Relief Act which would give 600 U.S. dollars of aid to almost every American in response to the COVID-19 pandemic. By the end of January 2021, Americans living in households with an income of less than 46,000 U.S. dollars a year had spent an average of 126 U.S. dollars from their stimulus checks. In comparison, those living in households with an income of more than 78,000 U.S. dollars a year spent 45 U.S dollars of the same check.

Comparing the stimulus packages

The COVID-Related Tax Relief Act was the second stimulus package that was passed in response to the pandemic in the United States. In April 2020, congress passed a two trillion U.S. dollar economic relief package called the Coronavirus Aid, Relief, and Economic Security (or CARES) Act. This package provided every American in need with 1,200 U.S. dollars. Around 81 percent of Americans approved of this relief package and supported its passing. However, after the first CARES Act check of 1,200 U.S. dollars, many Americans felt that the second stimulus check of 600 U.S. dollars was too little to help, especially when compared to the stimulus paid out by other nations. Among G20 member countries, the United States came in fourth in size of COVID-19 fiscal stimulus packages as a share of the nation's gross domestic product (GDP), at 13.2 percent. In comparison, Japan passed the largest fiscal stimulus package, which amounted to about 21.1 percent of its GDP.

COVID-19: impact on employment in the United States

Many Americans depended greatly on the economic relief provided by the stimulus package, as many businesses were forced to let their employees go due to economic strain, as can be seen in the unemployment rate in the United States. Some industries suffered more than others, such as the leisure and hospitality industry, which suffered the highest unemployment rate of any industry at 15.9 percent as of January 2021 (not seasonally adjusted), largely due to its dependence on tourism and travel, which were greatly restricted under coronavirus-related restrictions. As of February 2021, approximately 15 percent of Americans with an income of less than 50,000 U.S. dollars reported that they had personally lost a job due to the pandemic.