The American Rescue Plan was signed into law in March 2021, and recipients began receiving stimulus checks within weeks of the law’s passage. It’s been more than a year since Americans were eligible for that level of widespread aid. A follow-up check, on the other hand, has been a tough sell.
The economy of the United States has improved dramatically over the past year. Employers can command higher wages because the job market is so strong, and the national unemployment rate has fallen significantly in recent months.
Despite this, many people in the United States are concerned about the economy’s direction. According to a recent CNBC + Acorns Invest in You survey, 81 percent of respondents believe that the U.S. economy will experience a recession at some point in the year 2022.
Although these concerns are understandable, the truth is that our economy is not on the verge of collapse. This means that a fourth stimulus check is unlikely to arrive any time soon.
It’s not as bad as it seems.
Because of the current state of the economy, it’s understandable why some people are concerned. Living costs have risen to the point where many people can no longer afford them. Others think the Ukraine conflict will have an adverse effect on the US economy.
In spite of these legitimate concerns, many economists believe that the economy hasn’t entered a recession. In terms of unemployment, the economy appears to be in a strong position.
New jobless claims totaled 166,000 for the week ending April 2. This is the lowest number of new claims per week since the end of 1968.
Last week, 1.72 million people in the United States were receiving unemployment benefits. At first glance, that may seem like a lot of people. A year ago, the unemployment rate was 18.4 million, so we’ve come a long way on that front.
Don’t rely on receiving assistance.
Legislators are aware of the hardships faced by many Americans due to rising living expenses. As gas prices continue to rise, some have even suggested distributing stimulus funds. In light of the Biden administration’s plan to tap into the nation’s oil reserves in order to lower gas prices, a gas-related stimulus is unlikely.
However, should the public expect a wide distribution of stimulus checks like those distributed under the American Recovery and Reinvestment Act of 2008? No. Even though inflation is a burden, it is not the same as having millions of unemployed Americans with no job prospects or vaccines to protect them, as was the case back then.
There is no doubt that inflation will eventually decline. There is no need for a fourth stimulus check because inflation alone is not enough to justify it, and neither is recession-related concerns, which economists aren’t eager to share with the rest of us.