The pandemic led to unprecedented strife in the US economy and many businesses shut down with losses of trillions. While the stimulus check waves were in their millions of dollars, the pandemic continued to prolong and stretch the resources of the federal administration.
But despite the severe pandemic restrictions, the economy staged a sharp recovery in 2021, though the travel restrictions and the mask mandate remain in place.
With trillions pumped into the system, the inflation rate skyrocketed in the first quarter of 2022 to reach the highest in 4 decades.
Of the approximately $5T injected into the US economy between March 2020 and February 2022, $1.8T went straight to families and individuals as stimulus checks, and businesses got their version of the stimulus check to the tune of $1.7T.
With the federal administration concentrating on building the infrastructure, economists had warned earlier that the successive stimulus checks would ultimately lead to a spike in the rate of inflation, and that happen in March 2022 when it touched a shocking 8.5%.
Even As Federal Stimulus Checks Dry Up, State Relief Packages Provide Temporary Relief
Though several sectors of the economy continue to boom, economists warn of a slide into severe recession if the federal administration does not take recourse to the measures available at this moment.
The administration has been forced to strike a fine balance between continuing the stimulus support and taking tough measures to bring down inflation.
Many states have started where the federal administration has left off. The support measures in place include stimulus checks to offset the rise in the prices of fuel and essentials.
California has proposed the distribution of gas cards of $400 for every car owned by residents subject to a maximum of 2 cars per family.
Illinois has proposed a more direct stimulus check of $100 for every adult and half that for children.
Governor Janet Mills had proposed sending stimulus checks worth $850 to state residents, paid out of the $682M surplus budget. New Mexico, Virginia, and New York have also proposed relief support for their residents.