More Stimulus Checks When Recession Hits?

Stimulus Check

Nearly all of the world’s main economies, particularly those in the US and Europe, are affected by hyperinflation, which is currently spreading and becoming worse all over the world. The present wave of ravenous inflation, which has severely damaged our standard of living, is a direct result of the incredibly lax and at the same time highly reckless financial policy (Stimulus Checks) implemented by numerous central banks.

The Federal Reserve’s QE (quantitative easing) and the Biden administration’s magnanimous fiscal stimulus spending to revive the pandemic-devastated US economy was first warned about by Lawrence Summers, the former chief US Treasury secretary and president of the prestigious Harvard University, who is regarded as a “genius economist” in the global economic community.

Stimulus Checks Will Help Revive The Economy 

The fact that the pandemic stimulus checks prevented a severe recession in the United States is their most beneficial result. Panic was in the air in the early stages of the epidemic. The Dow Jones Industrial Average plunged by a staggering 37 percent in just over a month as the unemployment rate shot up to 14.8 percent between January 2020 and March, the worst level since records began in 1948.

Without prompt action, the financial consequences may have been catastrophic. Summers issued a warning over a year ago, stating that the US government’s spending binge will result in rising inflation and that there is a 1/3 chance that the US economy will enter a recession by the end of 2022. The White House, which obstinately maintained inflation would only be temporary, rejected his stern warning. The objective is to keep spending because if consumer spending slows or stops, businesses will respond by laying off even more employees, which will only make the recession worse and last longer.

Relief measures include raising food stamps, temporarily lowering taxes, increasing unemployment benefits, and disbursing stimulus checks.