In spite of the potential for deterioration, the current state of the economy does not justify another round of stimulus checks.
People across the country are fighting to make ends meet at the moment. There has been an increase in the cost of living as a result of inflation and the Ukraine crisis.
Many families are unable to make ends meet because they have no funds to draw from, either because they used up their cash reserves during the pandemic or because they never had money in the bank, to begin with.
A lot of people in need in this country are hopeful that Congress will somehow approve a fourth stimulus check. However, the U.S. economy would have to take a significant turn for the worst — namely, into a recession zone — before that could happen. Even though recession signs are already blinking, that’s not where we’re at right now.
Is the economy on the verge of a downturn?
Despite rising inflation, the U.S. economy is now in solid shape. In fact, despite the blow inflation deals to cash-strapped people, it’s easy to argue that inflation is a sign of a thriving economy.
As a result of rising demand, the cost of living can rise. In addition, a high level of demand suggests that people have extra cash lying around.
Meanwhile, the job market in the United States is doing well. More than 5 million fewer people were unemployed in February than there were job vacancies, according to the Bureau of Labor Statistics. It was far more difficult to get a job the previous time stimulus money was distributed.
There was a recent warning from the bond market, however: a recessionary yield curve inverted for US Treasury bonds. The return on investment for long-term bonds is often higher than that of short-term bonds. Why is this so? A higher level of risk is assumed by investors who plan to hold their money for a longer period of time.
The yield curve momentarily inverted earlier this week, which meant that the yield on the 10-year Treasury bond fell below the yield on the two-year Treasury bond for a brief period of time earlier this week. Even if the inversion happened just for a short time, it’s worth checking to see if it occurs again.
A recession isn’t imminent, therefore there’s no reason to raise the alarm. The economy isn’t poor enough to need a fourth stimulus package right now, however. As a result, Americans must come to terms with this.
When the cost of living is high, making ends meet can be difficult.
Sadly, today’s cash-strapped households may have to turn to additional employment in order to keep up with rising living expenditures. But there’s good news: the gig economy has plenty of openings in the area.
Those who are able to put in the time and effort to do so may be able to increase their income to the point where it can cover their living expenses in addition to their regular salaries.
It’s possible that lawmakers will begin to contemplate a fourth stimulus wave if the economy continues to decline. A gas-specific stimulus is currently being proposed by certain politicians, which would only be available during periods of high gas prices, such as now. That gas stimulus is still just an idea, so don’t put your money on it just yet.