There have been three federal stimulus checks, but a fourth isn’t coming
The US federal government responded to the coronavirus pandemic by sending out stimulus checks to help low-income and medium-income Americans, with one stimulus check of $1,200 in April 2020, another stimulus check of $600 in December 2020 and then a third stimulus check of $1,400 in March 2021. However, a fourth stimulus check it not likely to be on the way.
So, why won’t there be a fourth stimulus check? Well, there are a variety of reasons and we outline the government’s arguments against a fourth stimulus payment being sent out through the Internal Revenue Service (IRS).
Rising inflation is a major concern in the USA right now, with the rate hitting 7.5% for January of 2022. When the last of the stimulus checks came out, in March of 2021, inflation was just 2.6%.
Some believe that the stimulus checks helped start the spike in inflation and, whether that’s true or not, another stimulus check wouldn’t help that situation.
The stimulus checks were sent out at a time when the economy was stagnant, as a result of coronavirus restrictions. There was a need for a boost, but now the economy is recovering naturally.
The pre-coronavirus pandemic unemployment rate was 3.7% and it got all the way down to 3.8% in February 2022, so it’s basically back to what it was.
This is good news in general as more and more Americans are earning an income again, which reduces the need for another stimulus check in the view of politicians.
The third explanation for the lack of a fourth stimulus check is the simple fact that politicians aren’t doing anything to make it happen. Some don’t think there is a need, partly because of the two reasons outlined above, while others have other priorities right now.
Even before the gas prices crisis and the Russian invasion of Ukraine, calls for a fourth stimulus check were growing quieter. Republicans were even joined by some Democrats in being against the idea of a fourth stimulus check, so there weren’t many calls for one because the politicians knew it’d be impossible to pass anyway.
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