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What the stimulus does for the economy

After this latest round of stimulus, economists are hoping to see a 5% growth, possibly putting us back on track pre-pandemic.

HOUSTON — It’s the money Americans have been waiting to receive. Some are on the verge of eviction while others are still receiving unemployment, so it’s no surprise that many already have big plans on what to do with that money.

Here's what some people said:

“I’ll be using my stimulus payment to pay my mortgage this month."

"I'm going to be paying for my final semester of college."

"I booked a cruise back in January for my grandchildren and I go in June, and that’s exactly where I’m going to put my $1,400.”

“Maybe purchase a stock."

“I plan on putting it in my savings and letting it build that way."

Stimulus checks are designed with one goal in mind.

“It’s designed to mainly reinvigorate the economy," UHD Assistant Professor Dietrich von Biedenfeld said.

He says that’s exactly what economists are hoping the bill will do.

“This is still supposed to bring us back to normal and put us on the projections we had for 2020," von Biedenfeld said.

He says before the pandemic the gross domestic product, which is the total value of goods produced and services provided during one year, was supposed to grow 2% to 2.5% percent in 2020.

Instead, it dropped about 3%.

After this latest round of stimulus, economists are hoping to see a 5% growth, possibly putting us back on track pre-pandemic.

But the hope is that you will spend your stimulus sooner rather than later.

“There is about 34% of the population anticipated to save, or is expected to save this money," von Biedenfeld said.

It’s your money, you can do whatever you want. Because even if you don’t spend it now, you still likely will in the future.

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