The U.S government’s new Child Tax Program will start its monthly payments soon.
This way of payments is the best form of government spending, according to an economist. She believes the federal government can allow this money to spur economic growth and help the nation’s younger generation.
She said this policy expansion is both politically and economically feasible, especially because it targets the youth.
This Child Tax Program is one of the best government spending ways for better social return, she added.
According to the information given by the U.S. Treasury Department and revenue department, over 35 million families across the nation have received the first monthly child tax credit payment as a part of this policy.
A total of about $15 billion U.S youth will be the beneficiary of the first round of the child tax credit payment. The monthly average price per person is around $423.
Parents and caretakers of around 90% of the children will also be the beneficiaries of the payment.
The stimulus payment for the parents and caretakers was approved by President Joe Biden that was to be given from the Covid relief package.
The program aims to reduce child poverty by 50%. This is a vital and historical bid in anti-poverty measures in the U.S since the 1964 poverty war, which President Lyndon B. Johnson initiated.
Melissa Schettini Kearney is the research associate, said; there is much evidence showing how the economic policy supplements families and leads to better educational and economic outcomes.