Stimulus Check: Mark Cuban Suggests $1,000 Every 2 Weeks for 2 Months for Every Household

By Madelaine D. First Posted: Sep 24, 2020 07:05 AM EDT

Self-made billionaire Mark Cuban suggests that every household in America should receive a $1,000 stimulus check every two weeks for the next two months.

The owner of the Dallas Mavericks and ABC's "Shark Tank" investor told CNBC Make It that "we need stimulus checks as much now as we did back then."

Around 13 million Americans are unemployed, and thousands of businesses are permanently closed in the United States.

Experts warned that more stimulus is needed for economic recovery amid the COVID-19 pandemic. However, Congress remained deadlock over a new coronavirus relief package, and it looks unlikely that a deal will happen any time soon.

Stimulus Check: Mark Cuban Suggests $1,000 Every 2 Weeks for 2 Months for Every Household

(Photo : Rich Fury)
2019 NBA Awards - Arrivals SANTA MONICA, CALIFORNIA - JUNE 24: Mark Cuban attends the 2019 NBA Awards at Barker Hangar on June 24, 2019 in Santa Monica, California.

According to Cuban, there are "two economies" of two sets of realities: those unable to stay afloat and one for those who can. He said that those who are unable to help are struggling badly, and we need to get them help. Cuban supports more stimulus checks being disbursed to provide that help.

No matter their income level, all American households should receive a $1,000 stimulus check every two weeks for the next two months, Cuban said. In May, the self-made billionaire proposed the same idea, saying that he still believes in it the same way today.

Besides, families would have to spend each check within ten days, or they would lose the money, according to Cuban. He believes the "use it or lose it approach" would be beneficial as it would promote spending, as per CNBC. This way, businesses would be on a rescue of staying open that will stimulate the economy.

Cuban told KNX 1070 News Radio in May: "I don't care what they spend it on. It could be candy; it could be rent; it could be their mortgage; it could be anything they deem necessary or that they want."

Without mandating the money be spent within 10 days of receipt, the Dallas Mavericks owner believes that many Americans will save it.

"People are uncertain about their future, so rather than spending, they save," Cuban said.

The ABC's "Shark Tank" investor seemed to have a point as many Americans are believed to save more than ever amid the COVID-19 pandemic. According to the U.S. Bureau of Economic Analysis, the personal savings rate hit a record high in April.

Cuban said his plan's goal is to get the money every two weeks in the economy. He added that even if they are closed and working online, once businesses start having demand, there is a reason for them to bring back employees and retain those employees if demand is sustained. However, this plan would be costly, Cuban acknowledged.

"There is certainly a lot of risk in this use it or lose it approach," Cuban tweeted in May. But his suggestion will allow demands for non-essential products and services to increase and keep most businesses alive.

Meanwhile, senior director of federal tax policy at the Center on Budget and Policy Priorities, Chuck Marr, told CNBC that Cuban's plan would work better if it specifically targeted those most in need.

"What's good about [Cuban's plan], and what's important, is he reflects the urgency of the situation. But I think you target money first for people that are hurting. People who are hurting and don't have other income, they're going to spend. I think if you made stimulus payments, they need to be targeted by income," Marr added.