Many customers are feeling the effects of inflation these days. With the growing cost of everything from transportation to groceries to clothing, Americans are having a more difficult time making ends meet than normal.
In fact, some people are still hoping that another stimulus payout would arrive in their bank accounts in 2022. However, given present economic conditions, that is unlikely to occur.
Job creation is on the upswing.
The U.S. economy added 678,000 nonfarm jobs in February, considerably exceeding economists’ forecasts of 440,000 new posts. Furthermore, the national jobless rate declined to 3.8 percent last month. That is the lowest unemployment rate since the pandemic’s inception.
Because the economy is doing so well right now and the labour market is so plentiful, it’s tough to justify a fourth stimulus package, even while inflation is causing many Americans to struggle. In fact, inflation, strangely enough, is a sign of a thriving economy.
One of the main reasons that the cost of items is rising right now is because there is more demand for products than there is supply. And that demand would not be there if more people did not have money to spend.
We’re witnessing comparable patterns in the housing market, both buying and renting. Nationally, home prices are rising because there are more interested buyers than available inventory. Similarly, the demand for rentals has skyrocketed in the last year, allowing landlords to charge tenants a premium.
There is a noticeable disconnect.
Our current economic condition is undeniably complicated. On the one hand, employment creation is brisk. Wage growth, on the other hand, isn’t keeping up with inflation, so many consumers feel they’re slipping behind (and to be clear, many are doing just that).
While it’s simple to point to present conditions as justification for further stimulus spending, the reality is that it’s difficult to do so. But it doesn’t mean lawmakers will stop handing out aid.
President Biden vowed in his recent State of the Union address to continue advocating for the extension of the expanded Child Tax Credit, which helped lift millions of children out of poverty last year. If there is no extension this year, the credit will be limited to $2,000 per qualified child. That’s a significant decrease from 2021, when the maximum was $3,000 per child between the ages of 6 and 17, and $3,600 for children under the age of 6.
Biden also discussed boosting the federal minimum wage, which has remained at $7.25 per hour for more than a decade. In addition, he wishes to implement initiatives that would alleviate the financial burden of daycare expenditures for working parents.
All of these actions are certainly not the same as issuing another round of stimulus checks. They may, however, serve a similar purpose: assisting suffering Americans in strengthening their finances and better managing their expenditures at a time when everything is so much more expensive.