Inflation for months now has driven Americans to hope for another round of stimulus checks from the federal government. The previous federal stimulus checks were for $1,400 which got a green signal in March 2021. However, the current situation suggests that federal stimulus aid is not required for 2022. But will a change Occur in 2023?
A Recession Could Spur Another Stimulus Check Round
Due to valid reasons, lawmakers have been disapproving of stimulus checks as of now. As a matter of fact, inflation has been soaring and people have been struggling. The reality is that the U.S. labor market still holds strong making the unemployment rates low and quite unlikely to have a stimulus check.
It is also easy to argue that stimulus checks can worsen inflation. Because the Americans were showered with green bills last year due to stimulus checks while the supply chains had been shutting down, we landed in a mess like this. This happened to create a disconnection between supply and demand resulting in driving the prices high.
Thankfully the current status shows the supply chains, are not as battered as last year. If the economy is added with more money then a problematic gap between supply and demand can happen.
What can fix inflation? In order to make the consumer spend less, the Federal Reserve aims to rise the interest rate. What could be a problem is if the consumers fuel a recession by balking at a higher cost and curbing expenditure in a big way. This could result in massive unemployment.
Nonetheless, a hit of recession and a wave of joblessness could compel lawmakers for another relief check package. But this is not something that should be hoped for. What could lead to a round of stimulus checks could be the U.S. economy going sour in 2023. This is not that should be counted on. The aim for the strugglers is to make use of today’s stronger labor market. Seeking out a better pay job or for an increment are a few ways to tackle the situation. The gig- economy is also a stronger option. It can never be similar to a stimulus check but a boost in income can be expected.
