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Wednesday, February 1, 2023

A 4th Stimulus Check: Is There More Relief From The Federal Administration?

Several states have been sending stimulus checks to their residents, aided by funds from the federal government.

The effect of the pandemic has been way longer than had previously been anticipated. Newer variants have pushed back a total economic recovery and several sectors continue to be severely affected. while the vaccination drive is underway in full swing, people continue to be economically affected by the downturn caused by the pandemic. While the 3 stimulus check payments were a blessing, people have long spent that amount and are hurting for more.

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People continue to struggle to put food on the table or pay for rent and utilities and a 4th stimulus check will be a great help at this stage. But the federal administration continues to be preoccupied with the infrastructure bill and the social bill, and it has been up to the states to come up with stimulus checks on their own.

Several states have been sending stimulus checks to their residents, aided by funds from the federal government. California was the first state off the mark with the Golden State Stimulus Check. But the question remains whether the IRS will send out another stimulus check from the federal administration.

Over 169M people received the 3rd stimulus check of $1,400 each. The total payment made came to around $422B. the American Rescue Plan checks were close behind the $600 and $1,200 relief stimulus checks paid out in 2020.

Stimulus Check: The Economic Recovery Rate Has Slowed Down Again In The 3rd Quarter

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There has been a major slowdown in the 3rd quarter as it grew at a dismal annualized rate of 2% from the 6.7% growth seen in the 2nd quarter. Though the GDP has reached the pre-pandemic levels, certain segments of the economy continue to hurt. The travel and tourism industry continues to face the brunt of the aftereffects of the pandemic. Savings are up, and the housing market is seeing a surge due to lower interest rates.

But financial insecurity continues to be rampant and many workers who lost jobs during the pandemic are yet to get an alternative.

But it is the shortage of food and default in rent and utilities that continue to be a cause of concern. 20M people reported a shortage of food (approximately 9% of the American population).

12M renters or 12% of the citizens have fallen behind on rent payments while $46B of rental assistance is yet to reach beneficiaries. Employment rates, too, remain below pre-pandemic levels. Around 267,000 workers applied for unemployment benefits just this week.

The end of the Child Tax Credit payments will put an end to almost all federal support linked to the pandemic and will make it tough for people across the US to sustain their families.

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