The first thing Americans spend on stimulus checks, even more than buying from Costco, Walmart and Target

“It is alarming how many Americans have used these funds to keep a roof over their heads and pay for necessities, given that the federal government has not clarified another round of stimulus payments to be provided in a near future “, according to the poll. by YouGov.

“The Americans are aware of the gloom of the near future, and they have taken the opportunity to use the stimulus funds to help them prepare for it. By paying down the debt, consumers are freeing up credit so they can get out of it serve if they find themselves unemployed in the near future, “adds the report.

More than 130 million stimulus checks reach homes. They are a key part of the CARES $ 2.2 trillion government law, but many laid-off workers say that a maximum payment of $ 1,200 is not enough to get them through another recession, and perhaps more great, the recession.

Some 2.4 million Americans claimed unemployment benefits last week, but the actual number was nearly a million higher, including a new federal assistance program; 35.5 million people have applied for benefits in their states since mid-March, when pandemic closures began.

About 8.1 million new claims were filed under a new federal program that converted freelancers and independent contractors, such as Writers or Uber
UBER
+ 1.66%
drivers, eligible for the first time. The total of new requests since mid-March amounts to almost 44 million.

“I will never give my wife $ 1,200 for her stimulus check. You will get a few hundred dollars for shopping. “What’s wrong with that?

My husband refuses to give me my stimulus check. He says I don’t deserve it because I didn’t win it. What can I do?

While states have ordered them to stay at home, unemployment rates in 43 states have set new records, based on records dating back to 1976. In Nevada, where unemployment reached 28.2%, and in Hawaii, where it reached 22.3%, the unemployment rate exceeded the previous one. maximums greater than 10 percentage points.

The only other state where unemployment exceeded 20% was Michigan (22.7%). Auto factories have started to reopen, but are hampered by a shortage of parts. Connecticut had the lowest unemployment rate (7.9%). Unemployment in seven other states was less than 10%.

Previous research supports the results of the latest survey. Because Americans received their $ 1,200 stimulus checks, many used it to keep a roof over their heads and food on the table, according to a new study from a team of economists.

“Given the size of the 2020 stimulus checks, we could have expected significant impacts in categories such as spending on cars, electronics, appliances and furnishings,” wrote economists. from Columbia University, Northwestern University, University of Chicago. and the University of Southern Denmark. .

“Instead, it appears that people are catching up on their rent and bills, as well as their spending on food, personal care and non-durable goods,” he said. This research examined the spending and savings habits of more than 1,600 people who received their stimulus checks before April 21.

The study, distributed this week by the National Bureau of Economic Research, offers another look at how the coronavirus epidemic and its economic consequences suddenly left many American families struggling with cash, especially those who the lowest incomes.

The Dow Jones Industrial Index
DJIA
-0.03%
and S&P 500
SPX
+ 0.23%
It largely ended on the Friday before Memorial Day weekend. Stock indexes finished last week with solid gains as markets followed in hopes of a short-term impact of the coronavirus on corporate profits.

(Andrew Keshner and Silvia Ascarelli contributed to this story.)