During one of the United States’ most challenging times about two years ago, the government authorized a series of three checks to be issued to qualifying Americans. Today in 2022, we are seeing some of the most inflated prices in American history: gas, food, shipping costs, baby formula, etcetera. Is the government taking their money back?
The first round of checks went out in April of 2020. Bear in mind that some Americans didn’t receive any money until they filed their taxes the following year.
During the first round of funds, eligible Americans received $1200 as an adult and $500 per child. Americans who received the funds first were recognized based on their tax filings from the previous year – hence why many people were waiting on it.
In the United States, Americans received three rounds of funds. Contrary to the monthly rounds of government aid administered in European countries, Australia, and some Asian countries.
The second round of financial aid was authorized in December 2020 and administered by January 2021. This round gave $600 per person and an additional $600 to qualifying children.
The Child Tax Credit for persons earning below a certain amount, which most Americans qualify for, held up the second round of checks. Again, Americans’ tax returns determined their ability to collect the funds. Most Americans still didn’t receive this since this was approved right before the tax season for the following year.
The third and final round of stimuli was administered to Americans making under $75K a year, $1400 per adult, and the same amount for qualifying children. The income threshold determined fewer Americans were able to collect on it.
So, assuming you qualified for all three – just yourself – not factoring in children or spouses, you collected $3200. $3200 was the amount the government felt would hold each of its citizens over during that time.
Some states have an excess of funds (which is impressive and speaks volumes to the individual states’ budgeting departments during a time of such financial strain) and are discussing the independent distribution of the fourth round of checks within their own respective states.
We know some spent it frivolously, others spent it more responsibly, but the point is, Americans spent it. Each stimuli package approved by Congress discussed billions and trillions of dollars. Hence, the discussion quickly transitioned to the concern around inflation.
The effects of inflation are most severe when the unemployment rate falls. It’s surprising in a time after such a monstrous global shift when the employee burnout rate is presently at an all-time high. So, people holding jobs feel spent (literally,) and people looking for jobs are settling if they don’t know their worth.
Should corporations pick up the tab on tuition for the employees they’re scouting? Surely, that could subside a portion of inflation since debt is such a huge part of it.
Without an incentive from their employers, how much longer will Americans be able to pay over $5.00 a gallon for gas so they can work? Government officials who were discussing gas-tax-relief packages now suddenly aren't. If Americans don’t feel valued in their jobs, or by their government, they’re maxing out every day, it’s a matter of time before the bubble pops.
$3000 went into our hands over two years. It was spent, and it did exactly what the government wanted it to do – keep the economy afloat. We can blame this president equally as much as the last one.
The incentive behind the stimuli was to stave off inflation and help Americans. Clearly, that is no longer the case since more money means more problems.