The epidemic caused unprecedented economic turmoil in the United States, resulting in the closure of numerous businesses and the loss of billions of dollars. While the stimulus check waves were in the millions of dollars, the epidemic put the federal government’s resources to the test.
Despite the severe pandemic restrictions, the economy recovered well in 2021, despite the travel ban and mask requirement.
In the first quarter of 2022, inflation reached its highest level in four decades, thanks to billions of dollars injected into the economy.
Between March 2020 and February 2022, $1.8 trillion of the $5 trillion invested in the US economy went directly to families and individuals as stimulus payments, while firms received $1.7 trillion.
Experts predicted that with the federal government focusing on infrastructure, the consecutive stimulus checks would eventually lead to a surge in inflation, which occurred in March 2022 when it reached an alarming 8.5 percent.
State relief packages provide short-term relief when federal stimulus funds run out.
While certain sectors of the economy continue to grow, analysts warn that unless the federal government takes immediate action, the country will enter a catastrophic recession.
The government has had to walk a fine line between maintaining stimulus and enacting harsh anti-inflationary measures.
Many states have continued where the federal government had left off. Stimulus checks have been implemented to compensate for the increase in the price of gasoline and other necessities.
California has proposed providing citizens with $400 gas vouchers for each vehicle they own, up to a maximum of two cars per household.
Governor Janet Mills proposed distributing $850 stimulus checks to state residents, funded by a $682 million surplus. Residents in New Mexico, Virginia, and New York have also asked for help.