The pandemic led to unprecedented strife in the U.S. economy, and many companies shut down with losses of trillions. While stimulus check waves were in their millions of dollars, the pandemic continued to extend and stretch the resources of the federal administration.
But despite the severe pandemic restrictions, the economy staged a sharp recovery in 2021, although travel restrictions and the mask mandate remain in place.
With trillions pumped into the system, inflation soared in the first quarter of 2022 to reach its highest in 4 decades.
Of the approx. $ 5T, injected into the U.S. economy between March 2020 and February 2022, went $ 1.8T directly to families and individuals who stimulus checks, and companies received their $ 1.7T version of the stimulus check.
As the federal administration concentrated on building infrastructure, economists had previously warned that successive stimulus checks would eventually lead to an increase in the inflation rate, and this happened in March 2022, when it reached a shocking 8.5%.
Even when federal stimulus controls dry out, state aid packages provide temporary relief
Although several sectors of the economy continue to boom, economists warn of a slippage in severe recession if the federal administration does not make use of the measures currently available.
The administration has been forced to find a fine balance between continuing stimulus support and taking tough measures to bring inflation down.
Many states have started where the federal administration escaped. The support measures include incentive checks to offset the increase in fuel and essential commodity prices.
California has proposed the distribution of $ 400 petrol cards for each car owned by residents, subject to a maximum of 2 cars per day. family.
Illinois has proposed a more direct stimulus check of $ 100 for each adult and half for children.
Governor Janet Mills had proposed sending stimulus checks worth $ 850 to nationals, paid out of the $ 682 million surplus budget. New Mexico, Virginia and New York have also proposed emergency assistance to their residents.