Biden State Of Union Speech Harps On Economic Growth: No Indication Of Further Stimulus Check

Stimulus Check
Stimulus Check

Biden’s second State of the Union address harped strongly on the US economy and its performance post-pandemic, which generally coincided with his two years at the top. The federal support in the war against inflation was bipartisan in the initial year when the first two of the three stimulus checks were introduced under the Trump administration. But things changed with the third stimulus check under the American Rescue Plan Act of March 2021.

Immediately after taking over in January 2021 after a controversial election and its aftermath, incoming president Joe Biden made it a priority to honor his election promise of sending out a $2,000 stimulus check to every deserving American. The third stimulus check or the Economic Impact Payment was, in the end, whittled down to $1,400, though it remains the biggest federal direct support ever.

President Joe Biden was all praise for the American economy and also his legislative accomplishments in his address on Tuesday night. He also spoke about the progress he had achieved and mentioned the turnaround in foreign policy from the time of his predecessor.

While President Biden stayed away from outright falsehoods, there were instances when he failed to be open with the facts. At other times he exaggerated some facts or omitted crucial context.

President Biden Said 12 Million New Jobs Created In His Two Years At The Top

The economy has indeed added 12.1 M jobs between the month he took over, which is January 2021, and January this year. While this is indeed a larger increase in the number of new jobs added over any other full-term serving presidents since 1945, by percentage terms he lags behind several other presidents.

stimulus check

While jobs increased by 8.5% under Biden’s rule, it was higher for Obama at 8.6%, Bill Clinton, 1.5% in his first term, President Reagan, in whose 2nd term 11.2% was added and 12.8% in Jimmy Carter’s 4 years in office.

But then President Biden was comparing his two years with the entire term of other presidents. So the comparison is not equal to be fair to him. But then President Biden’s initial two years were preceded by a huge loss as the economy was brought almost to a standstill during the pandemic period in 2020.

President Biden also referred to the drastic rise in prices and said that inflation had been a global issue as a result of the disruption in production and supply chain wrought about by the pandemic. he also blamed the war in Europe for the disruption in the oil supply and also the distribution of food items.

But President Biden failed to mention that the inflation rate in the US has been way above the world average of developed economies. And it was partly fueled by the third stimulus check that created an abnormally robust demand for goods and led to a scarcity of many items. It was more a combination of factors caused by the stimulus check and the huge money that was pumped into the economy in a short time with the second and third stimulus checks coming in quick succession.

Critics of the stimulus checks contend that inflation has been one of the driving factors of inflation. That is one of the reasons that inflation in Europe and other developed countries has not been as severe and nowhere near the 8-9% mark that has become the norm in the US in 2022.

State Stimulus Checks Remain The Only Lifeline In 2022

The IRS continues to process the federal stimulus checks for the 10 million Americans who did not receive the third stimulus checks, the expanded Child Tax Credit Stimulus check, and the Earned Income Tax Credit.

But the federal administration has not been able to muster the requisite support of Congress to move toward another round of stimulus checks. This has forced states to continue with some form of a stimulus check to support residents as they fight rising prices for over a year.

Many residents of states such as California, Idaho, Colorado, New Mexico, Illinois, South Carolina, and Pennsylvania who have filed their income tax returns are eligible for some form of support from their respective states.

While states such as Maine and New Mexico have sent out their version of the stimulus check to residents, California has delayed its Middle-Class Tax Rebate to coincide with the festive season.

Stimulus Check

The flexed Middle-Class rebate program in California was made out to residents with an Adjusted Gross Income of less than $250,000 for individuals and double that for a married couple filing jointly in 2020 in California. Eligible residents received between $200 to $1,050 depending on their income for that year and also the inclusion of dependents.

The maximum amount will go out to married or joint filers whose accumulated income for California in 2020 was below $150,000. This was revealed by the Franchise Tax Board of California.

Over $9 billion in stimulus checks have already gone out to 31,650,087 taxpaying residents of California by January 13, 2023, the FTB website has revealed. The final drive for the California Middle-Class Tax Rebate will be by debit card for any resident filers who have changed their residential address after filing their income tax returns for the state for 2020.

The Colorado stimulus checks worth $750 for individuals and doubles that amount for married couples filing jointly will go out to those who are yet to receive their refund by end-January. This was revealed by the Colorado Cash Back program authorities.

Governor Brad Little of Idaho signed a $500 M law in September 2022 that gives out $300 or 10% to eligible residents who have filed their 2020 and 2021 income tax returns. The higher of the two amounts will be paid to such residents.

Residents of Illinois are in line to receive two stimulus checks if they successfully qualify for the payments. While the first one is linked to their income, the second stimulus check is based on the property tax filed. The return on income is between $50 and $100 and is based on the claimed income of $200,000 as individuals and double that amount for married couples or joint filers.

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