Many people dreaded the potential devastation that the Omicron outbreak would cause when it first arrived on American soil in 2021. According to the Motley Fool, many people are concerned about the long-term closure of businesses due to this highly contagious variant of the deadly COVID-19 pandemic.
An extremely high unemployment rate and a slowdown in the economic recovery of the United States of America’s economy were feared. A fourth stimulus check was expected by many Americans this year.
America Is Back At Work
According to the most recent data, however, it appears that the United States is returning to work and unemployment is decreasing.
As a result, the Omicron surge in the U.S. was short-lived and didn’t have as big an impact on the economy as had been expected. 467, 000 jobs were created in the United States economy in January this year. Figures from the last three weeks show a decrease in unemployment claims. It dropped from 239,000 to 223,000 in the last two weeks. ‘
Also Read: People Who Died in 2022 Are Eligible for The $1,400 Stimulus Payment in 2021.
No Reasons For 4th Check
A year will elapse before President Joe Biden’s bill to extend the child tax credit is signed into law. As a result, a fourth stimulus check appears highly unlikely.
Due to a stronger American economy, there is less need for stimulus funds to be provided. However, the 7.5% inflation rate must be taken into consideration.
Inflation can be a sign of higher demand, which means more people are spending money, but it can also be a sign of difficulty for individual consumers.
America’s $1 trillion debt, which they entered into in 2021, may indicate that the country is spending money, as the country has accumulated so much debt.
Stimulus payments could also be one of the main reasons why the general public has more money to spend.
In the end, this could have led to a surplus of demand oversupply. As a result, a fourth stimulus check may not only be unnecessary but may also be harmful to the long-term health of the American economy.