Numerous firms shut down and billions of dollars were lost as a result of the unprecedented economic turmoil caused by the epidemic in the United States. Despite the fact that the stimulus check waves were in the millions of dollars, the epidemic continued to strain the federal government’s resources.
The economy rebounded well in 2021 despite the severe pandemic restrictions, while the travel ban and mask requirement remained in effect.
In the first quarter of 2022, inflation reached its highest level in four decades due to the injection of billions of dollars into the economy.
Families and individuals received $1.8 trillion of the $5 trillion injected into the US economy between March 2020 and February 2022, while businesses received $1.7 trillion.
In March 2022, when the inflation rate reached an alarming 8.5%, it was predicted that the federal government’s focus on infrastructure would eventually lead to a surge in inflation caused by the consecutive stimulus checks.
State aid programs provide temporary relief when federal stimulus funds run out.
Analysts warn that the nation will enter a catastrophic recession if the federal government does not take immediate action, despite the fact that certain sectors of the economy continue to expand.
The government was required to strike a delicate balance between maintaining stimulus and implementing stringent anti-inflation measures.
Many states have assumed the federal government’s responsibilities. To counteract the rise in the cost of gasoline and other necessities, stimulus measures have been implemented.
California has proposed providing citizens with gas vouchers worth $400 for each vehicle they own, up to a maximum of two vehicles per household.
Governor Janet Mills suggested issuing $850 stimulus checks to state residents, funded by a $682 million budget surplus. New York, New Mexico, and Virginia residents have also requested assistance.