Amid the coronavirus crisis, plenty of partisans on both sides have lambasted the notion of forgoing means-testing or minimally means-testing direct cash relief to consumers. Although the modified version of the Senate Republican bill no longer casts out quite as many people who would need the money as it previously did, it will still reward people who claim they don’t need the money. If you really believe you don’t need the money, here are the best ways to spend it.
The workers and businesses hit the hardest by expanding shelter-in-place enforcement and mandatory business closures are predominately service businesses. Of the estimated $1,200 in cash that most people will get, those who can afford it should seriously consider spending a good deal of it on gift cards for businesses that have no possible way of operating for at least the next month. If you have a preferred nail salon or small brick-and-mortar store that has no means of delivery, you can essentially give small businesses a cash advance with a gift card.
Plenty of bars and movie theaters that would otherwise be shut down have innovated, largely thanks to overdue deregulation of food and beverage vending. For example, The Lot, a small California chain of movie theaters, is selling food and alcohol to go, and McClellan’s Retreat, a Washington bar, is selling craft cocktails to go. Grocery stores may be the only businesses in the nation that are currently booming. If you can afford it, you’re better off buying food and beer to go, especially from establishments such as bars and movie theaters that will likely see a larger financial hit than restaurants, which can continue to serve their primary function during the shutdown.
While you’re at it, tip generously. If you really don’t need that extra $1,200, there’s no reason why you can’t give a 50% tip on your delivery or take-out orders. For that matter, don’t cancel your gym membership, even if it’s closed. Every customer who continues to pay could save a gym employee from being laid off.
And if you really have cash to burn, donate it. Not only can you donate to medical organizations, food banks, and domestic violence organizations that are exceptionally overburdened, you can also give cash directly to the workers who do need it. GoFundMe announced that 1 out of every 3 campaigns on its site is related to the coronavirus, many of which come from recently laid-off workers who can’t make their bills.
If you really want to thread the needle, find businesses such as Spa Gregorie’s in Newport Beach, California, which is including surgical masks and bulk disinfectants with gift certificate sales. You can get a gift certificate and then go donate those medical goods. Not only have you then made a medical donation, but you’ve also helped keep a business afloat in the process.
Plenty of people will need every cent of their checks to pay their water bills, buy discount groceries in bulk, and make their car payments. That’s why the primary purpose of this crisis bill is relief. The stimulus is secondary, but that doesn’t make it unimportant. A person with stable but moderate income may not “need” a $1,200 check because they can still earn their paychecks from home, but it will likely change their spending habits. A young professional in a city who ordinarily only orders out once a week could do so three or four times with a check from Congress, providing a further safety net to small businesses and the employees whose livelihoods are at stake.
So what if you don’t need the money? Plenty of other people would take it, gladly, and you ought to be happy to give it away.
