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Friday, January 27, 2023

Any Additional Stimulus Check From The Federal Administration Could Make Worse

Despite the unending rise in all-around prices, the federal administration is wary of sending out further stimulus checks.  Some economic experts and the Republican opposition allege that the successive stimulus checks have taken a toll on the economy. They believe that the present record inflation is a direct result of the stimulus checks, especially the third stimulus check.

Experts believe that further release of funds by the federal administration for economic impact payments will only worsen an already fragile situation. But studies indicate that Americans continue to favor the fourth round of stimulus checks to ward off the effect of high inflation on the population.

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The record inflation has pushed America towards never-ending inflation and rising costs at petrol stations, grocery stores, and similar goods and services. 75% of Americans believe another round of stimulus hacks will only worsen the situation.

Pumping In A Fourth Stimulus Check Will Only Worsen The Situation

Experts say that while Americans continue to demand more money, pumping more money into an already strained economy will only worsen the situation and could lead to another round of inflation rise.

Putting more money directly in the hands of Americans will only fuel further inflation and could even worsen the situation and the economy would get caught in a vicious cycle. It could also lead to a further increase in the inflation rate which has already stayed at a record growth rate for a whole year.

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Professor Jason Furman of Harvard has said that with supply lines already stretched, any further stimulus checks will increase demand. And combined with supply constraints, any additional relief check could lead to another vicious round of price increases.

State relief checks continue to go out at a fast pace and around 32 states have already sent out payments or are in the act of sending out inflation relief payments to citizens.

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