The fourth wave of federal stimulus checks was purportedly approved by President Joe Biden in false stories that went viral on social media in February. Fact-checkers swiftly refuted the allegations, but the fact that they spread so widely and so rapidly suggested that American taxpayers could be interested in getting another round of direct stimulus checks.
The Biden administration is definitely aware of how difficult it is for the typical American worker to keep up with the rising expenses of food, gas, and consumer goods given that inflation is at a forty-year high, but will the White House ever sincerely contemplate another stimulus package?
Perhaps, but most likely not for a while. Jen Psaki, the White House press secretary at the time, stated that it was up to Congress to come up with a plan in May of last year when progressive Congressional Democrats were pressuring the Biden administration to announce a fourth federal stimulus package.
Psaki added, “We’ll see what Congress members suggest, but those are not free.
In the end, the discussion came to an end when the Congressional Democrats decided not to pursue their proposal for a fourth stimulus. Since then, neither the White House nor the Democratic leadership has given any hint that a fourth check may be forthcoming, but that doesn’t mean there aren’t any conditions under which it might.
2024 Election Desperation and New Stimulus Check
In times of economic crisis, stimulus payments seem to be well-liked. According to a Morning Consult poll conducted in March of last year, 79% of eligible voters favored giving Americans making up to $75,000 per year a $1,400 stimulus payment. The poll revealed strong support from Republicans (67%), who were supported by 91% of Democrats.
In light of this, it is not completely unlikely that, in the event that the economy does not recover by the start of the 2024 presidential election campaign, the Biden administration would decide to treat a fourth stimulus check more seriously. The ability of Biden to galvanize the nation behind him for a second term in 2024 would be severely hampered by a suffering economy, and polls already indicate a president finding it difficult to sustain support, especially within his own party.
Delivering additional stimulus would, however, stimulate demand at a time when the Federal Reserve is raising interest rates in an effort to lower demand and control inflation. Stimulus checks may momentarily ease some suffering, but in the long run, they only make things worse and oblige the Federal Reserve to keep enacting policies to reduce demand and bring prices under control.