Despite reservations from conservative economists, more states are going ahead with inflation relief stimulus checks for residents. Any fears of further fueling inflation have been set aside as people continue to suffer from high prices of food, gasoline, utilities, and home rent.
The past three federal stimulus checks and the allied support measures by the administration had an immediate positive effect of staving off poverty and homelessness, as people were able to put food on the table, but essential items, pay off their bills, and even save a part of their stimulus checks.
This was possible despite the whole of America going into a prolonged lockdown that shut down businesses for months. The parallel support afforded to businesses, other organizations, and state and local governments enabled them to reach out to residents and workers.
Businesses continued to function despite a total halt in production for weeks and were able to retain and pay their workers. This had an incredibly positive effect when the economy gradually opened up months later. Businesses were able to immediately return to a normal state and the recession was the shortest in decades, despite the unprecedented shutdown and the economic downturn caused by the pandemic.
Stimulus Checks Get The Blame For Inflation From Republicans
Republicans and conservative economists have squarely blamed the record inflation on the third stimulus check, which was part of the American Rescue Plan Act signed by President Biden in March 2021. They said that the economy had returned to normalcy by then and more money only fueled inflation that has reached record levels not witnessed since 1981.
But in an election year with the midterms just three months away, the truth will become a casualty as the opposition Republicans try to pin the cause of the mess on the Democrats. They have conveniently omitted to mention that President Trump’s stimulus check package was significantly bigger than the ARPA, signed by Biden immediately after he assumed power.
The stimulus checks played a part in the high inflation that has assailed Americans. But it was a predicted side effect of the effort to keep the economy from sinking during the shutdown period and immediately rejuvenate the economy once the nation reopened after the pandemic.
The Rescue Plan ensured that people did not sink into poverty, lost their homes, or default on their credit payments and utility bills. The money sent directly through stimulus checks also ensured that people stayed at home and were not forced to go out in search of jobs when the pandemic was at its peak. This prevented the rapid spread of the virus at a crucial period and saved the administration much money and effort in the fight against the COVID-19 virus.
The direct support to businesses during the pandemic also ensured that millions of workers could retain their jobs and continue to get paid despite disruption in production and sales. Businesses were able to retain their workforce and were immediately able to step up production once the situation limped back to normal.
The Federal Reserve has maintained that the disruption in supply and the war in Europe was the major reason for the increase in prices. While they have conceded that the stimulus check had a part to play in the rapid increase that has touched record levels, the truth is that the fast injection of direct money into the economy rejuvenated it and prevented a long period of recession that was seen during the 2008-2009 economic crisis.
In the final analysis, it has been revealed that only $900 billion of the $6 trillion approved by Congress in various stages went to Americans directly as three distinct Economic Impact Payment or stimulus checks.
More States Step In With Stimulus Checks
California and Florida are the latest among states to move in with some form of relief effort even as ever-increasing prices continue to batter families across the country. The stimulus check amounts have vastly varied across states and have depended on the budget of each state.
Florida was a surprise entry to the list as its Republican Governor Ron DeSantis has been strongly against any form of stimulus check from the start. The 2024 presidential hopeful had been a staunch supporter of Trump and has blamed Biden for the present economic mess.
Some families with kids in Florida will get the $450 inflation relief stimulus check. It is expected to offset the impact of surging inflation faced by low-income families from some specific sectors and help them afford supplies for the approaching school year, according to the state administration.
Close to 60,000 families will get the stimulus check, which will be one-off payments. The Dept. of Children and Families has specified that families must confirm one of the following criteria to be eligible.
The $450 stimulus check will go out to foster parents, relative and non-relative caregivers, and families receiving welfare assistance, also known as the cash assistance Temporary Assistance for Needy Families. Participants in the Guardianship Assistance Program are also eligible for the stimulus check.
California has been among the more generous states and their largesse has been possible thanks to the huge budget surplus of around $97 billion reported by the state administration.
The budget for 2022-23 was signed by Democrat Governor Gavin Newsom and included a direct stimulus check of between 200 and $1,050 to 23 million residents of the state, which is around 60% of the total population.
A joint statement released by the governor and leaders in the state assembly informed residents that the budget has addressed their most pressing needs and would be sending dollars directly to millions of Californians who continue to grapple with rising prices of all essential products and services due to the supply disruption and the war in Europe.
Payments will go out in October and continue into the first quarter of 2023. The $17 billion inflation-relief package is part of the largest state budget and includes a temporary suspension of diesel taxes levied by the state, direct stimulus checks, and also support to residents with utility costs and home rent.
Residents who have filed their 2020 state income tax returns by October 15, 2021, and have been a resident of the state for at least 6 months in 2020 are eligible for the stimulus check. Residents who earned $75,000 or less as individuals and double that amount as joint filers and have at least one dependent will get between $700 and $1,050. It will pare down with an increase in income.
