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Saturday, July 2, 2022

Stimulus Checks Can Aid The People Fight Inflation

Congress passed massive stimulus checks in 2020 and 2021 to help Americans amid the pandemic. Now, inflation has posed another challenge for the U.S. As federal stimulus packages for inflation aren’t on the horizon, some states are launching stimulus programs of their own. 

Do Stimulus Checks Fuel Inflation?

Some argue that issuing stimulus checks to help people cope with higher prices isn’t the best approach. Free money, without the creation of any goods and services, fuels inflation. The stimulus provided by the federal and state governments due to the pandemic and the Fed’s monetary easing has contributed to the situation we’re in.

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According to the U.S. Department of Health and Human Services, government action during the pandemic kept 11 million Americans out of poverty. On the other hand, the Federal Reserve Bank of San Francisco reports that stimulus payments added about 3 percent to U.S. inflation by the end of 2021.

States considering inflation stimulus measures:

-California residents are set to receive up to $400 for each car they own, for up to two vehicles.

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-Georgia’s governor has signed into law $250 stimulus checks for single taxpayers. Heads of households will receive $375 and joint filers will receive $500.

-Hawaii will be issuing $300 to residents who make $100,000 or less annually, and $100 to those who earn more than $100,000.

-Colorado plans to spend $400 on taxpayers by Sept. 2022.

-Delaware residents are getting $300.

-Using some of Pennsylvania’s remaining American Rescue Plan funds, Governor Tom Wolf is pushing for $2,000 checks to households in the state making less than $80,000 per year.

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