As inflation rises, many people are struggling to keep up with the rising cost of living. Americans are finding it harder than ever to make ends meet as the price of just about anything keeps rising.
However, there are still some people who think they will receive another stimulus payment in 2022. However, given the current economy, this is unlikely to happen.
The gain in employment is increasing.
The U.S. economy added 678,000 non-agricultural jobs in February, significantly exceeding economists’ projections of about 440,000 new jobs, according to the Labor Department. In addition, unemployment in the United States fell to 3.8 percent last month. Since the beginning of the pandemic, unemployment has been at its lowest level.
It’s hard to argue for a fourth stimulus check because the economy is doing so well and the job market is full of jobs, even while inflation is hurting many Americans. Unexpectedly, inflation is a positive economic indicator.
Currently, there is more demand for things than there is supply, which drives up the price of goods. There would not be such a great demand if more people did not have more money to spend.
Similar patterns are emerging in both the home purchase and rental market. Nationwide, house prices have risen because there are more potential buyers than homes for sale. As a result, landlords are now able to charge tenants a premium due to the growing demand for leases.
Inconsistency is evident.
We are currently in a difficult financial situation. On the other hand, there has been a lot of job growth. Although wages are rising faster than inflation, consumers feel as if they are losing ground (and to be clear, many do just that).
More stimulus money can be justified by pointing to the existing situation, but this is not always the case. Even still, politicians do not give up providing aid.
Last year, President Biden announced in his State of the Union speech that he would work to ensure a larger child tax deduction is available in the coming years. The credit for each eligible child will be limited to $ 2,000 if there is no extension this year. From 2021, the maximum per. children between 6 and 17 $ 3,000, while the maximum per. children under 6 were $ 3,600.
The federal minimum wage, which has remained at $ 7.25 an hour for more than a decade, was also mentioned by Biden. His plans also include the introduction of initiatives to reduce the financial burden borne by working parents in the area of childcare.
A new round of stimulus checks is certainly not the same as any of these initiatives. It’s a good thing they can achieve the same goal: to help people who are trying to make ends meet in a time when everything is so much more expensive.