Many Americans had cause to rejoice when lawmakers passed the American Rescue Plan in March 2021. That enormous stimulus package not only made it possible for a batch of $1,400 stimulus cheques, but it also significantly increased the value of the Child Tax Credit.
In total, the federal stimulus cash that consumers got in 2021 aided many of them in strengthening their savings and dealing with the rising prices. However, in 2022 there was no government stimulus funding available. Instead, limited state stimulus money was the most information consumers had access to, leaving many Americans in the dark.
Job Growth Surged In 2022
Historically, politicians would approve stimulus funding when the economy was struggling, and unemployment was high. But a crisis of unemployment is not going to happen anytime soon.
The cause? A staggering 4.5 million jobs were added to the American economy in 2022. Except for the job growth seen in 2021, when the economic system was playing catch-up in the wake of the epidemic, that is the second-highest number on record. In the meantime, the nation’s unemployment rate was 3.5% as of the end of 2022. In almost 20 years, that is the lowest amount ever recorded.
All things considered, the unemployment situation appears to be stable. Therefore, even if a downturn does occur in 2023, it is unlikely to cause the unemployment rate to increase to the point where more federal stimulus funding is necessary unless the downturn is catastrophic.
It might not even be justified by an increase in unemployment benefits, which employees were subjected to in 2020 while the unemployment rate began to skyrocket.
Federal Stimulus Payment Is Unlikely To Be Sent
The news that an economic stimulus payment is unlikely to be sent in 2023 may be discouraging. However, after reaching a peak last summer, inflation appears to be progressively decreasing, which is encouraging. And if that trend persists, consumers may experience some reprieve from rising living expenses. That differs from receiving a direct paycheck from the government.
However, both ultimately make it more straightforward for customers to pay their bills. Furthermore, contrary to what many analysts anticipated, consumer spending did not decline throughout the 2022 holiday season, according to current data on Christmas expenditures.
In actuality, consumer spending increased. That suggests that a recession may not be imminent contrary to what some economists believe. And it’s always encouraging to hear that reports Nasdaq.
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