Misleading: Stimulus Relief Fund Comparison
The Claim
Countries outside of the United States have been giving away significantly higher levels of stimulus relief.
News posted on
Emerging story
In the midst of a raging battle in the United States over new stimulus relief, an image has been circulating on social media that shames the financial assistance the U.S. has provided its citizens. The lack of new stimulus funds since the one-time payment of $1,200 to independent adults in early spring has been harshly critiqued during a time when many Americans are struggling to make rent and buy groceries.
Misbar’s Analysis
Due to the economic chaos wrought by the COVID-19 pandemic, many countries have taken steps to prop up their sinking economies through financial support. However, that does not always come in the form of direct support to their citizens such as with the $1,200 U.S. payment.
In the case of the countries listed in the image (Australia, Canada, Denmark, France, Germany, Ireland, and the United Kingdom) the stimulus has been delivered as unemployment money. It also is calculated as a percentage (varying between countries) of a person's salary, and not a flat payment. In some cases the money was delivered through companies in an effort to keep them from terminating jobs.
The U.S. also significantly increased unemployment eligibility and benefits during 2020, especially through the CARES Act, although not to the degree of the aforementioned countries.
Overall, the U.S. had a larger immediate fiscal release than most other countries, but a much lower stimulus package.
