President Joe Biden seemed to flip his tune on Thursday, saying that Americans feel very discouraged about the current economic status and that there have been some reasons to be down owing to excessive inflation and the absence of sufficient COVID-19 funding. This came after he insisted the United States was not in a recession just hours earlier. President has said that he would seriously look into the matter. In the afternoon summit with the heads of the different banks of America, the president seemed worried about the economy, and this was when he spoke the words.
The president said that in the foremost year of the epidemic, the Federal Government had sent $8K worth of stimulus checks for the households of America. The Government has aided the common American households with a total of $1.9 trillion. He said that when someone is earning a paycheck of 120grand a year, and they get this stimulus check worth $8k, it is a lump sum and has helped many of his compatriots.
President Worried About Economy: Admitted Stimulus Check Can Help
Next, the president claimed that even though many workers are busy and receiving wage raises this year, it still feels like life is harder because most Americans do not receive direct government support.
Republicans claim that the American Contingency Plan Act contributed to inflation by dispersing so many stimulus checks without any financial compensation. The worst inflation rate completely negated the average salary increases for US workers since June 1981, which was 9.1 percent.
Biden’s $8,000 number appeared to include individual stimulus checks of $1,400 and a temporary increase in the yearly tax rebates.
According to a study published in early April by researchers of the Reserve Bank of San Francisco, increased spending during the pandemic, including the Rescue Mission Act, may have contributed to about 3 percent points of the current inflation rates of the country in the fourth quarter of 2021, or about half the rate at the time.