Stimulus Check Update- Will The Payments Be Made During Recession?

recession Stimulus Check
Stimulus Check

It can be said with no shred of doubt that the stimulus check payments which were made during the pandemic have turned out to be very popular.

Around 4 in 5 voters were heavily in support of the payment that was passed by the government to assist their families. Interestingly, the bill behind the stimulus payments also saw both the Republicans and the Democrats uniting together- something that is pretty rare in Washington. Nevertheless, the payments weren’t processed without controversy. Some of the criticism that the payments faced heeded towards how the payments were unsuccessful towards being targeted towards the financially insufficient and how they could be the catalyst to inflation.

Expert Weighs In On Stimulus Check Probabilities 

Yet, one can assume that the stimulus check payments were of much use- rather than be a burden to the government and the community. They certainly helped in reducing the poverty rate along with promoting spending. And it is being understood that the government could be using tools again when a recession hits the country. Claudia Sahm, a former Federal Reserve Economist and macroeconomic policy consultant, did state that stimulus payments were the way to go.

During times of economic downturn, the US government has several levers in place that would prevent the families from spending a lot as well as protect them from the worst impacts of the recession. It is nevertheless imperative that people keep spending in fewer amounts, as dried-up spending would lead to companies laying off workers even further- something that would simply deepen the entire effects of the recession. One of the relief measures during this time is stimulus check payment. 

The government had previously deployed the stimulus check payments in both 2001 and 2008 but the coronavirus pandemic led to an unprecedented level of issuing stimulus payments. Sahm went on to comment that the coronavirus pandemic was the first time multiple rounds of stimulus payments were distributed.