It’s been a while since the pandemic began, however, its effects are still present in many industries in economic metrics. Beyond just these visible effects though, is a psychological shift within Americans; changing the economy for better or for worse. In case you aren’t familiar with the details of what occurred back in 2020, the government issues around 472 million payments totaling about $803 billion in the form of stimulus checks. This financial effort enabled households to sustain themselves as Covid-19 shattered the U.S. economy.
The ongoing inflation within the US economy is intense and affecting people all over the country. Prices of everything from gas to groceries have risen significantly, and some believe it can be traced back to the financial assistance provided to Americans via COVID stimulus checks. Indeed, households received payments varying from $600 to $1,400 a person based on their personal income limits and financial situation. Some households are still struggling despite the rise in the economy over the past year or so, and their spending habits are being challenged. During the era of stimulus checks, most Americans used them to pay off things like credit card debt and for essentials like food. Today, however, credit card debt is booming under the pressures of inflation and basics like food have gotten expensive.
What do you think about the effects of stimulus checks and have they been helpful for the economy overall?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.