Hyperinflation affects almost every major economy in the world and is now becoming worse worldwide. Particularly in the case of the economy in the US and Europe, the standard of life has drastically decreased as a result of the present wave of rabid inflation, which is a direct result of the very liberal but also incredibly risky Stimulus Check policies pursued by numerous central banks.
The first warning about the Federal Reserve’s QE (quantitative easing) and the Biden administration’s generous fiscal Stimulus Checks to revive the pandemic-devastated US economy was issued by Lawrence Summers, the former chief US Treasury secretary and current president of the prestigious Harvard University, who is regarded as a “genius economist” in the international economic community.
Stimulus Checks Will Help Revive The Economy
The fact that a major recession in the United States was avoided is the pandemic stimulus checks’ biggest success. There was an immediate feeling of alarm since the pandemic was only beginning. The Dow Jones Industrial Average dropped by a shocking 37 percent in little more than a month as the unemployment rate climbed to 14.8 percent between January 2020 and March, the lowest level since records began in 1948.
The financial ramifications of the Stimulus Checks may have been severe if prompt action had not been taken. Summers warned that there is a 1/3 chance that the US economy would enter a recession by the end of 2022 and that the US government’s spending binge will result in rising inflation more than a year ago. The White House, which obstinately maintained that inflation would only be temporary, disregarded his stern warning. Continued spending is crucial because if it declines or stops, businesses will respond by laying off more people, which would further exacerbate the crisis and prolong its duration.
In order to provide some assistance, food stamps have been raised, taxes have been temporarily decreased, unemployment benefits have been enhanced, and Stimulus Checks have been distributed.