Many people are struggling to keep up with inflation these days. Americans are finding it harder than usual to make ends meet as the price of everything rises, from petrol to food to apparel.
In fact, some folks are still hoping for a stimulus check-in in 2022. However, given the current state of the economy, such is improbable.
Employment Are Rising
The economy of the United States added 678,000 non-farm employment in February, substantially above economists’ projections of 440,000 new jobs. In addition, the jobless rate in the United States fell to 3.8 percent last month. Since the beginning of the pandemic, the unemployment rate has never been lower.
And although inflation is forcing many Americans to suffer, it’s tough to argue for a fourth stimulus check since the economy is doing quite well right now and the labor market is so full with employment. In fact, inflation is a sign of a strong economy, strangely enough.
The fact that there is currently more demand for things than supply is a major factor driving up the price of commodities. And if it wasn’t for the fact that more people have the cash to spend, that demand wouldn’t exist.
Similar patterns can be seen in the property buying and renting markets. On a nationwide level, property prices are rising since there are more potential buyers than available inventory. Likewise, rental demand has skyrocketed in the last year, placing owners in a situation where they may charge a premium to tenants.
A Significant Gap
The present economic condition is undeniably complicated. On the one hand, employment creation is robust. Wages, on the other hand, aren’t keeping up with inflation, so many individuals feel left behind.
While it’s tempting to use present conditions as a rationale for greater stimulus spending, the reality is that it’s difficult to do so. That isn’t to say that lawmakers aren’t willing to help.
President Biden promised to keep pressing to extend the increased Child Tax Credit, which assisted millions of kids out of distress last year, in his latest State of the Union speech. If no renewal is granted this year, the credit will be capped at $2,000 per qualified child. That’s down from $3,000 per child between the ages of 6 and 17 in 2021, and $3,600 for kids under the age of 6.
Biden also discussed increasing the federal minimum wage, which has remained at $7.25 per hour for more than a decade. He also wants to implement initiatives that will help working parents with daycare expenditures.
All of these initiatives are obviously not the same as issuing another round of stimulus checks. However, they may serve a similar purpose: assisting financially distressed Americans in better managing their expenses at a moment because everything is far more costly.