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Government stimulus refers to attempting to kickstart the economy by gifting citizens with funds. This policiy presuposes that the spending and savings will help the economy.

How News Sources Portray Government Stimulus Policies

This chart shows how major news sources across the ideological spectrum frame government stimulus policies, from left to right-leaning perspectives.

Many of the media biases we observe, whether in news coverage or political rhetoric, stem from fundamental differences in policy perspectives held by major political parties. One of the many key points of conflict is government stimulus.

Government stimulus refers to “attempting to kickstart the economy by gifting citizens with funds.” This policy presupposes that spending and savings will help the economy. By giving citizens or businesses money to spend—also known as a stimulus—the economy will boost and even become more stable.

The COVID-19 Pandemic ravaged the world in late 2019 and early 2020, killing 6.3 million people worldwide, of which 1.01 million were from the United States. Seeing the negative effect that the pandemic would have on not only the people but the economy, the government began to issue stimulus checks in an attempt to help people afford essential items whilst the country was shut down and jobs were being lost at a record pace. This established a bipartisan divide because not everyone agreed on how much help should be provided or for how long it would continue.

The Democratic Stance on Government Stimulus

The Democratic stance on government spending generally supports stimulus to protect citizens and stabilize the economy during crises. They believe the government has a responsibility to help its citizens when dealing with job losses or price increases. The Democratic Party tends to view stimulus policy as an investment in the country’s long-term economic stability, preventing deeper recession and encouraging consumer spending.

During the COVID-19 pandemic, most Democrats pushed for larger and more frequent stimulus payments to support working-class families. They argue that direct payments help reduce poverty while keeping small businesses open, achieving financial security during lockdown.

Politicians Who Support Government Stimulus Rights

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Support Democrats

Nine-in-ten (92%) Democrats said an additional package would be necessary.

The Republican Stance on Government Stimulus

The Republican stance on government regulation largely reflects this policy, as the party tends to be more cautious with government spending. Republicans tend to argue that recurring stimulus can lead to inflation, increase the national debt, and make people dependent on government aid instead of their own work. Instead, the party prefers directing government focus to tax cuts, deregulation, and job creation through the private sector rather than direct payments.

In addition, the Republicans’ policy stance on government stimulus has been heavily reflected during the COVID-19 pandemic, where the Republican Party voted to support the stimulus but with limits. They initially voted for checks to help during the emergency, but later opposed additional rounds, saying it was too expensive and would slow the country’s recovery.

Politicians Who Oppose Government Stimulus Rights

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Oppose Republicans

Two-thirds of Republicans (65%) said an additional package would be necessary.

Policy on Government Stimulus in the United States

Government stimulus is part of a larger approach known as fiscal policy, which embodies how the government uses spending and taxes to influence the economy. When the economy is struggling, the government might increase spending or give out fiscal policy stimulus checks to boost demand. This approach was based on Keynesian stabilization policy, which argues that government action can reduce the impact of recession.

During the height of the COVID-19 pandemic, nearly two-thirds of Republicans (65%) said an additional package would be necessary, compared with about nine-in-ten (92%) Democrats. The politicians of the Republican and Democratic parties did not adhere to the beliefs of their party in the electorate and rather took an entirely different stance.

While Democrats rallied for another stimulus, nearly all Republicans refused. This is best shown by H.R. 1319, a bill to grant stimulus relief to qualifying Americans, where 100% of Democrats voted for another stimulus, and 100% of Republicans voted against it. Due to the Democrats’ control of the Senate, the stimulus was passed.

A Brief History of Government Stimulus in the U.S.

The history of government stimulus dates back to the 20th century during the Great Depression. President Franklin D. Roosevelt’s administration passed a series of programs through the first and second New Deals, which created jobs and funded public projects to rebuild the economy. The First New Deal (1933-1934) brought the Emergency Banking Act and the Banking Act of 1933 as a way to handle the pressing bank crisis. The Second New Deal (1935-1936) created programs such as the Social Security Board (SSB), Securities and Exchange Commission (SEC), Federal Housing Administration (FHA), and Federal Communications Commission (FCC) to help combat unemployment and economic challenges.

In 2008, President George W. Bush and later President Barack Obama approved large stimulus packages to combat the Great Recession. The Economic Stimulus Act of 2008 consisted of $152 billion, including a $600 tax rebate to low and middle-class households. The American Recovery and Reinvestment Act (ARRA) of 2009 aimed to save existing jobs, create new jobs, invest in infrastructure, education, health, renewable energy, and provide temporary relief programs for those most affected.

When COVID-19 spread and the recession began, lawmakers passed a series of bills to support families and businesses affected by the virus. The Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) provided $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak. The Families First Coronavirus Response Act (H.R. 6201) provided paid sick leave, tax credits, and free COVID-19 testing; expanded food assistance and unemployment benefits; and increased Medicaid funding. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 784) allocated money to individuals, small and large businesses, and healthcare systems and hospitals.

The history of government stimulus demonstrates how these actions helped millions of people, but also raised concerns about inflation and long-term debt.

What the Future Holds

The future of government stimulus will depend on the economy’s health and political leadership. Democrats are likely to continue supporting stimulus policies in times of crises, while Republicans remain cautious about large government spending. In the coming years, the impact of government policies on the economy will be a recurring topic, with both parties demonstrating a clear divide on how far legislation should go.

Future debates about stimulus will likely focus on inflation, economic inequality, and the government’s role in managing the economy. As the U.S. continues to face challenges, such as global conflicts, automation, and rising living costs, the debate over stimulus spending will remain a central issue dividing both parties.

To explore how each political party views other key policy topics, visit Biasly’s full list of Political Party Policy Stances.

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