Stimulus checks this year from the federal government has propped up the American economy and supported citizens in need throughout the Covid-19 pandemic. While many economists worried the stimulus payments would lead to increased inflation and a depression-era collapse of the stock market, this has not been the case. With the Delta variant on the rise globally, people are wondering if they can expect another round of stimulus checks this year.
Here are three reasons why more economic relief in the form of stimulus payments may be on the way as soon as this coming fall of 2021.
- Considering the powerful impact stimulus money had on the American economy, it would appear the federal government would be willing to use this tactic again if the economy showed signs of inflation. If you look at stimulus payments less as necessary funding for American in need, and more as an instrument to prop up the economy, you can see why the Fed and President Biden would be likely to consider another payment before the end of 2021.
- A significant percentage of Americans refuse to get vaccinated. This resistance is prolonging the economic damage from the pandemic. As cases rise and the full re-opening of America is delayed, the likelihood of another stimulus payment arriving in mailboxes and checking accounts of U.S. citizens before the end of the year seems probable.
- Another catalyst for stimulus could be the impending end of extended unemployment benefits and eviction moratoriums at both the state and federal levels of government. This could create the type of financial pain on individual Americans that could call for relief in the form of another round of direct stimulus spending.
It is quite possible that any combination of the three scenarios above could compel the federal government to initiate another round of stimulus spending sooner than later.