Inflation alone does not lead to a fourth check – Community News
Stimulus Check

Inflation alone does not lead to a fourth check

Is there any hope for a fourth stimulus check? That’s the question on the mind of many people as they struggle with the rising cost of living.

The latest round of stimulus checks to get hold of Americans’ bank accounts went out in March, and since then many have wondered if there would be another round. But based on recent economic conditions, that extra scrutiny is becoming less and less likely.

The economy is in better shape

Today, many people struggle to keep up with the ever-increasing cost of living. But rampant inflation alone probably won’t argue for a new stimulus check.

In fact, inflation is actually a sign that the economy is doing well. That may seem counterintuitive, but a major reason why the cost of goods is so high right now is that consumer demand exceeds available supply. And for the demand to be this high, it means that consumers need to have the financial means to buy things.

That was not so much the case earlier this year, when unemployment rates were even higher. But now consumers seem to have the flexibility to spend more, pushing up prices.

Speaking of unemployment, new claims for unemployment benefits fell again last week. And the number of people receiving unemployment benefits has hit its lowest point in 20 months.

While some unemployed workers may face personal difficulties to re-enter the workforce, the reality is that there are plenty of jobs out there. In fact, many industries still face labor shortages, which can be frustrating, but it’s also a sign that jobs are out there. And in light of all this, it’s hard to argue that economic conditions warrant a follow-up stimulus round.

Americans can get help with heating bills

While there won’t be a fourth stimulus check anytime soon, those struggling with a rising cost of living may be lining up for a bit of reprieve. With the cost of natural gas rising, lawmakers fear that many Americans will fail to keep up with the cost of heating their homes this winter. And so the Biden administration had announced plans to dive into leftover COVID-19 relief funds and make some of that aid available in the form of heating bill help.

In fact, there is an estimated $376 billion left that lawmakers have access to for this purpose. And while that’s not the same as a direct stimulus check that can be spent on anything, it can still become a very essential round of help.

In addition, families eligible for the increased child discount have one more monthly installment payment in December before it expires. But then the remainder of the Child Rebate will be available to recipients in the form of tax refunds in 2022. Lawmakers also plan to keep the enhanced version of the credit in place for the coming year so that a large number of Americans will also have access to that additional aid.

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Rakesh

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