Three stimulus checks were sent nationally at the peak of the COVID-19 outbreak, courtesy of federal politicians. But no new laws to increase people’s income have been introduced since March of 2021. Congress has been preoccupied with other matters, and there is little public support for making another payment.
But a recession might alter that.
Why A Recession Could Mean More Stimulus Checks
In the event of a US recession, legislators may decide to provide another stimulus check payment.
There’s a straightforward explanation for why a recession might increase the likelihood of a subsequent payout. In the past, stimulus payments have been used to counteract this sort of economic slowdown.
In 2001, for instance, the Bush government responded to the crisis by giving adults who filed taxes $300 in stimulus money. Another recession hit in 2008 as a result of the financial crisis, prompting President George W. Bush to sign legislation that would provide most individuals $600 and married couples filing jointly $1,200 in tax relief if their earnings were below a specific level. There was a tax credit of $300 per kid included in the stimulus package of 2008.
In the event of another economic downturn, politicians would be under considerable pressure to follow the precedent set by previous stimulus payouts.
Predicting the occurrence of a recession is challenging. There are a number of reasons, including disruptions in the supply chain, excessive inflation, interest rate hikes by the Federal Reserve, the continuing conflict in Ukraine, and so on, that have led some analysts to predict the likelihood of such an event. Yet, nobody can predict with certainty whether or when the United States would experience a recession.