Stimulus Check has provided the whole of the US with financial stability. People have welcomed the announcement with open arms. The funding provided by the government has enabled the economy to fight back. Citizens have used the money to pay off their debts. Others have used it to add to their savings. However, every good thing has an adverse effect. These checks are also no exceptions. According to reports, there has been a noticeable price hike. Politicians are blaming the third set of checks to be the culprit.
Stimulus Check Adversely Affecting The Economy, Says Reports
The third set of Stimulus Checks has been rolled out. The payments seemed to provide relief to millions of Americans. But it has its adversities too. According to recent studies, these checks were responsible for inflation.
There has been a noticeable hike in the Index Of Prices For Consumers. The prices have fluctuated to a great extent. The index recorded a 6% inflation in recent times. Economists are blaming the third Check & the Child Tax Credit. The increase of 6% is the highest in 13years. However, other economists do not seem to be very concerned with the scenario. They rationalized the development with their theory. They stated that many commodities hit an all-time low price in the previous year. It was normal for the prices to go up.
The Pandemic has also contributed largely towards the price hike. Many businesses got shut down due to decreased supplies. However, as life has begun to normalize, the demands have increased. But industries are facing an acute shortage of resources. This also led to abnormalities in the price.
Fuel and Gasoline have recorded the most hikes. It amounted to a 45% increase. The debate over whether Stimulus Checks has a part to play continues. Only time will justify the allegations as the world prepares to be normalized.