On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $2.2 trillion to consumers as a spending bridge to get through virus-induced shutdowns that ravaged businesses and employment.
The Act provided taxpayers a one-time
direct deposit of up to $1,200 while married couples received $2,400, plus an additional $500 per child. The payments were available for individuals with incomes up to $75,000 and $150,000 for married couples.
To a large extent, the Act seemed to accomplish what was intended. After falling at an annualized 31.4% in the second quarter of 2020, U.S. GDP rebounded with a 33.4% third-quarter increase. The most amazing part of this was that only a portion of the aid to consumers was spent.