Nearly every major economy around the globe is impacted by hyperinflation, which is now growing and becoming worse everywhere. This is especially true of the economies in the US and Europe. The current wave of rabid inflation, which has significantly reduced our level of living, is a direct outcome of the very permissive and at the same time extremely dangerous financial policy adopted by various central banks.
Lawrence Summers, the former chief US Treasury secretary and current president of the esteemed Harvard University, who is regarded as a “genius economist” in the international economic community, issued the first warning about the Federal Reserve’s QE (quantitative easing) and the Biden administration’s generous fiscal Stimulus Check spending to revive the pandemic-devastated US economy.
Stimulus Checks Will Help Revive The Economy
The greatest positive outcome of the pandemic stimulus checks is that they avoided a serious recession in the United States. Early on in the outbreak, there was a palpable sense of panic. As the unemployment rate spiked to 14.8 percent between January 2020 and March, the lowest level since records started in 1948, the Dow Jones Industrial Average fell by a startling 37 percent in just over a month.
Without quick action, the financial repercussions of Stimulus Checks may have been disastrous. Summers issued a warning over a year ago, indicating that there is a 1/3 probability that the US economy would experience a recession by the end of 2022 and that the US government’s spending spree will lead to growing inflation. His severe warning was ignored by the White House, which obstinately insisted that inflation would only be transitory. It is important to continue spending because if it decreases or stops, firms will react by laying off even more workers, which will only make the recession worse and endure longer.
Food stamps are being increased, taxes are being temporarily reduced, unemployment benefits are being increased, and stimulus payments are being given out as relief measures.