As President Joe Biden pushes for another round of stimulus checks for most Americans, a new study is suggesting that not giving out any sort of payment to households making more than $75,000 a year would be the most economically prudent.

The analysis, conducted by nonpartisan, nonprofit Opportunity Insights, showed that families earning under about $75,000 generally spend the money quickly. But for households earning more than $78,000 (and singles earning more than $50,000), they are likely to spend just $45 of a $600 stimulus check over the first month. Scaled up to $1,400 payments, that would mean only $105 would be spent.

“Targeting the next round of stimulus payments toward lower-income households would save substantial resources that could be used to support other programs, with minimal impact on economic activity,” the study’s authors wrote.

The research further revealed that the total price tag to send out another round of checks to couples earning more than $75,000 and singles earning more than $50,000 would be $200 billion—of which $15 billion, or 7.5 percent, would be spent.

Under Biden’s proposal, most American households would receive $1,400 payments. The research, though, may provide more ammunition for lawmakers who have criticized the stimulus checks as failing to provide targeted relief, mostly for low-income families. In the earlier effort to send out $2,000 checks to Americans, Senate Minority Leader Mitch McConnell called it “socialism for rich people.”

Biden, however, has indicated that he is open to negotiating the economic terms for an additional round of direct payments to Americans.  

“You know I proposed that we—because it was bipartisan, I thought it would increase the prospects of passage—the additional $1,400 in direct cash payment to folks,” Biden said earlier this week, adding that he thought the numbers are “rational and reasonable.”  

“Well, there’s legitimate reason for people to say, ‘Do you have the lines drawn the exact right way? Should it go to anybody making over X-number of dollars or why?’” he added. “I’m open to negotiate those things.”  

Others have brought up the idea of using stimulus checks as pay incentives to get Americans vaccinated in an effort to finally make headway in ending the yearlong coronavirus pandemic.  

For example, Rep. Steve Stivers (R-Ohio) admitted last week that he would be willing to green-light $1,400 stimulus checks to people who receive the shot.  

“It’s so important that we build herd immunity as soon as we can. While I am not for giving a $1,400 stimulus check for anything, I’d be willing to sign off on a stimulus check of $1,400 for people who take the vaccine,” he said in an interview on Yahoo Finance Live.  

“And I hope the administration will look at that option because we actually buy something with our $1,400 and that’s herd immunity.”  

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.  

Image: Reuters