Would Biden ever consider a fourth stimulus check? Expert analysis of what could happen: In February, fake posts circulated on social media claiming that President Joe Biden had approved a fourth round of federal stimulus. The reports were quickly refuted by fact-checkers, but the fact that the rumors circulated so widely and so quickly indicated some interest from US taxpayers in receiving another round of immediate stimulus.
With inflation at its 40-year high, the Biden administration is no doubt aware that the average American worker is struggling to cover the rising costs of food, gas and consumer goods — but will the White House ever seriously consider a new stimulus? consider?
Maybe, but probably not for a while.
Last May, as progressive congressional Democrats pressured Biden’s White House to announce a fourth federal stimulus package, then-White House press secretary Jen Psaki said it was up to Congress to come up with a plan. come.
“We’ll see what members of Congress propose, but it’s not free,” Psaki said.
In the end, the Congressional Democrats got no further than a plan for a fourth stimulus, and the talk effectively ended. There’s no indication from the White House or Democratic leadership that a fourth audit could be underway since then, but that doesn’t mean there weren’t circumstances in which it could happen.
2024 Election Despair and New Stimulus Control
Stimulus checks in times of economic crisis are proving to be popular. In March last year, a Morning Consult poll found that 79% of registered voters supported a $1,400 stimulus check for Americans earning up to $75,000 a year. The poll showed 91% support from Democrats and a significant 67% support from Republicans.
With this in mind, it’s not entirely impossible that the Biden administration would choose to take a fourth stimulus check more seriously in the event that the economy doesn’t improve by the time the 2024 presidential campaign kicks off. A struggling economy into 2024 would seriously hamper Biden’s ability to pull the country behind him for a second time, and polls are already showing a president struggles to maintain support even within his own party.
The problem with giving new stimulus, however, is that it would increase demand at a time when the Federal Reserve raises interest rates to reduce demand and curb inflation. Stimulus controls may temporarily relieve some pain, but in the long run they prolong the torment and force the Federal Reserve to continue taking steps to curb demand and bring prices under control.
US President Joe Biden. Image credit: Creative Commons.
For that reason, a stimulus check in the run-up to the next presidential election may well be a good option for the Biden administration. By the time the American public feels the pain again, he may already have been re-elected.
The other scenario in which a fourth federal stimulus check could be implemented is a recession.
In July, Tara Sinclair, an economics professor at George Washington University, told MoneyWise that stimulus measures have historically been “general policy” in times of recession and that they would “probably” be part of the federal government’s response the next time they do. a recession is coming.
The question is whether the White House will admit it. Biden’s White House has so far rejected the idea that the economy is in recession, despite two consecutive quarters of negative growth. With the mid-terms of November approaching, it is in Democrats’ best interest to halt reports and speculation about a recession in the hopes of seeing growth next quarter.
By 2024, there will have been plenty of time for economists and the American public to make their own assessments of how the economy is doing — and if the Biden administration can no longer deny the obvious, a fourth round of stimulus measures could might be needed.
Jack Buckby is a British author, counter-extremism researcher and journalist based in New York. Reporting on the UK, Europe and the US, he works to analyze and understand left and right radicalisation, and reports on Western governments’ approaches to today’s pressing issues. His books and research papers explore these themes and propose pragmatic solutions to our increasingly polarized society.