It does not appear that any federal Stimulus Check will touch bank balances for March — or any time in the foreseeable future, despite hopes that some states would extend some stimulus payouts to consumers to help them control inflation.
Congress would need to adopt legislation enabling more stimulus funding in order for yet another stimulus check to be issued in 2023. Even if many People are having trouble with inflation, increased spending power is unlikely to make inflation go down. The demand for consumer products would continue to rise if individuals had more money to spend. Given that supply systems have not fully recovered from the epidemic, this might result in shortages and higher pricing.
Stimulus Checks Are A Dream
Although getting additional funds in the form of stimulus relief checks to counteract inflation may seem like a good idea, it would probably have unexpected repercussions that would further fuel inflation. While stimulus spending did not exclusively contribute to inflation, it was undoubtedly a significant component. In April 2020, when the epidemic first started, Americans earned $1,200. This money provided assistance to persons who had little to no income due to being furloughed, laid off, or unable to work. Most people spent this first round of Stimulus Checks for needs as they came.
As a result of the American Rescue Plan Act, an additional $600 in stimulus funding was received between December 2020 and January 2021. This time, roughly half of all grantees paid off the debt with the money. Americans got an additional $1,400 in stimulus payments by March 2021. Around 33% of recipients saved this money in an account.
Taxpayers with children also got an expanded Child Tax Credit of $3,600 for children under the age of 5 and $3,000 per kid up to the age of 17, with fifty percent of that sum provided upfront, in addition to stimulus checks.
