The Biden administration has not officially announced whether it will add a fourth stimulus check to its plan to expand the program. However, it has been acknowledged that the program is expensive and has other priorities. It did not include an additional stimulus check in its original plans, but some members of Congress are now backing the idea.
But there are also some concerns that sending more cash to Americans will exacerbate the inflation problem. One professor said lawmakers should consider a cutoff level for stimulus checks and consider how the extra income will affect the labor supply. There is no “one size fits all” solution to the inflation problem, he said. Moreover, he pointed out that while sending cash to Americans would provide temporary relief, it would only compound the inflation problem in the mid to long term.
It is unlikely that the Biden administration will add a fourth stimulus check to its plan, which would raise the total cost of the program by hundreds of billions of dollars. Instead, it will probably focus on Biden’s Plan to rebuild the economy. The plan includes proposals to extend the child tax credit, offer free community college, and increase family leaves, among other things.
The Biden administration has other priorities, which include rebuilding the nation’s infrastructure. The administration has proposed an American Jobs Plan, which includes $2.3 trillion in infrastructure. This plan would fund repairs and maintenance of rail service and internet access, among other things.
Requirements for receiving a fourth stimulus check
The government has made three rounds of direct-payment stimulus checks for eligible workers in the past two years. Each round had slightly different rules and payment constraints. There is no guarantee a fourth round will be made available. If it is, the requirements for receiving a fourth check will change.
The third round of stimulus checks was distributed by the federal government, and a total of $3,200 per adult, child, or dependent is available to the general public. People who did not receive these checks may be able to claim them as a tax credit in 2020. While President Biden praised the third round’s success, he stopped short of calling for a fourth.
The fourth round of stimulus checks is being issued on a state-by-state basis. Some states have set up specific criteria for recipients, such as occupation and income. Many of these states will offer this type of relief to low-income families and the unemployed. For example, states may allocate funds to front-line workers, service workers, or families with young children.
Another type of stimulus check is the child tax credit. It is available to new and existing parents. The credit was previously set at $2,000 at tax time, but this new version increased the amount to $3,600 with the option to pay monthly. The Build Back Better bill, which passed the House last week, aims to extend this credit for another year. However, Sen. Joe Manchin announced Sunday that he would not vote for this bill. With no Republicans on board, an alternative must be sought.
Impact of a fourth stimulus check on inflation
Inflation is expected to rise with the issuance of another stimulus check. The new money will increase the supply of money, which will in turn increase the price of goods. However, this will not lead to long-term gains for the country. Inflation is not a good thing for the economy.
The government has already released three stimulus checks to combat the deteriorating economy. These checks were meant to keep the economy afloat and allow people to avoid financial disaster in the face of rising prices. However, a fourth stimulus check could be a different story. While most Americans support an inflation-relief check, they are also wary of an additional check. A recent poll conducted by Redfield & Wilton Strategies for Newsweek found strong support for the idea. It found that 42% of eligible voters strongly agreed with the idea.
While the extra cash can help struggling families pay their bills, economists warn that more money will raise prices. However, the administration believes that direct investments will spur the economy’s recovery. The Biden administration has emphasized infrastructure spending as one of the key factors that could trigger a recovery.
Another reason to support another stimulus check is the high level of unemployment in the country. Since the economy is struggling, higher unemployment rates can result in a higher unemployment rate. But if the government decides to give a fourth stimulus check, there is no reason why it wouldn’t do it.