Given the high inflation that hits the United States, unemployment rates and other factors, could create the storm for the approval of a fourth stimulus check in the country
The entire year of 2022, and during the first months of 2023, we have seen how several states in the United States have granted stimulus checks to their residents as an emergency measure to help them combat the high inflation that has hit the country for a year. However, despite the attempts and calls from various organizations, nothing has happened with a fourth stimulus check at the federal level.
In fact, some experts have insisted that inflation could be a factor that pushes the arrival of more stimulus checks at the federal level, but so far, Congress has nothing in mind, what’s more, it is not even an issue that has been inside the lobby
The last stimulus checks that were approved in the United States at the federal level were granted due to the crisis caused by the Covid-19 pandemic. This money was undoubtedly a boon to millions of Americans, who were struggling to make ends meet, paying off their debts, and even having trouble paying their food and rent.
At that time, the economy was paralyzed, not only in the United States but worldwide, but little by little normality has resumed, although with its clear economic challenges.
Now, the context is different, although given the high inflation and unemployment rates that have been showing recently, given the millions of layoffs that are being made in different industries, nothing has been said yet. Something that worries many, since, according to the forecasts of various analyses, the United States would soon enter an economic recession.
In Globe Live Media we are going to tell you about some numbers that should determine the arrival of more aid money in the pockets of Americans.
1.- Inflation
Since 2022, Americans have faced inflation that has reached all-time highs, and even all-time highs, even exceeding 8%. Although the last quarter of the year has seen a drop, inflation remains high. Attempts by the US Federal Reserve to cushion it by raising interest rates at the federal level are hardly being seen.
According to the latest report from the country’s Bureau of Labor Statistics (BLS), inter-annual inflation for January 2023 stood at 6.4%, which shows that it is gradually easing. However, experts say that it will stop giving way in a more notable way at the end of 2023.
Otherwise, Americans will continue to struggle to meet all their expenses, and then Congress may need to adopt some form of financial aid.
2.- Unemployment
According to the latest BLS report on employment indices, total nonfarm payroll employment increased by 517,000 in January, and the unemployment rate was little changed at 3.4%.
“Growth was across the board, led by gains in leisure and hospitality, professional and business services, and health care. Employment also increased in government, partially reflecting the return of workers from a strike,” explains the latest BLS report.
There are serious concerns that this situation could be reversed sometime in 2023. So far we have seen how technology companies have made thousands of layoffs, which have been highly publicized, but it is not that other industries are not being affected. due to the loss of staff.
In the event that unemployment gets too high, the United States Congress would have to intervene and one of those ways, experts bet, is by awarding a new federal stimulus check. For example, during the Covid-19 pandemic, leaders approved raising the amount of unemployment benefits available to eligible workers and also decided to expand the qualification to obtain them.
3.- Gross Domestic Product
Better known as GDP. According to the United States Bureau of Economic Analysis, which provides quarterly reports on GDP, indicates that if there are two quarters of negative growth , this would indicate that the country is probably entering an economic recession.
So a new stimulus check could be real in the event that the economy tanks. Watching the mobility of inflation, unemployment and GDP will be key elements that would help push a fourth stimulus check through Congress.
So, for now, all that remains is to observe them closely.