The US economy added 678,000 non-farm employment in February, considerably above economists’ projections of 440,000 new jobs. Furthermore, the national jobless rate dropped to 3.8 percent last month. That is the lowest unemployment rate since the start of the epidemic.
Even if inflation is forcing many Americans to suffer, it’s tough to make the argument for a fourth stimulus check since the economy is doing so well right now and the labor market is so full of employment. Inflation, strangely enough, is a sign of a thriving economy.
Stimulus Check Does Not Have The Political Backing
The fact that there is more demand for things than supply is a factor driving up the cost of commodities. And if it weren’t for the fact that more people have money to spend, that demand wouldn’t exist. Similar patterns may be seen in the home-buying and renting markets. Home prices are rising because there are more potential buyers than available inventory.
Similarly, rental demand has increased in the last year, placing landlords in a position where they may charge a premium to renters. President Biden stated in his recent State of the Union speech that he will continue to press for the extension of the increased CTC, which helped millions of children escape poverty last year. In the absence of a bump, the stimulus check credit will be capped at $2,000 per qualified kid this year. That’s down from $3,000 per kid between the ages of 6 and 17 in 2021 and $3,600 for children under age 6.
Biden also discussed boosting the federal minimum wage, which has remained at $7.25 per hour for more than a decade. He also wants to implement stimulus check initiatives that would help working parents with daycare expenditures. The country’s gross domestic product (GDP) has recovered from the effects of the epidemic. The economy has fully recovered, according to this indicator.