Inflation Rise And Increased Unemployment Has Affected The US Economy Significantly

The new year arrived on a sad note for most Americans. The Federal government ceased the stimulus payments and the Child Tax Credit. Yet, millions of low-income families and individuals have received financial assistance for the last two years. The financial aid helped several families rise above poverty and raise their living standards.

Inflation Rise And Increased Unemployment Has Affected The US Economy Significantly

The families will have to cope with additional expenses without the monthly benefits from the government after a long time. In addition, Yahoo Finance reports that economic experts predict several significant influences of these pandemic benefits on the country’s economy, both good and bad.

Federal Programs Assisted Millions During The Pandemic

Financial experts believe that the federal relief programs supported millions in need and relieved them of an economic debacle. The unemployment rates are still high, and several low-income families struggle to pull their daily finances together. However, the conditions have improved enough, and further government support is not essential. The large-scale benefits have deteriorated the country’s economic structure. The supply chain in several industries witnessed a disruption due to higher demands of products in the last few years. The stimulus packages and the Child Tax Credit thickened the public’s purse and surged the buying.

Condition Is Not As Desperate As Before

Yahoo finance quoted Peter C. Earle, economist and research fellow at the American Institute for Economic Research, who said, “To a certain extent, the pandemic relief programs provided a lifeline to unemployed people. But they also helped create the shipping problems we have seen develop over the past six to eight months. First, we saw a stimulus payment-driven tidal wave of consumption activity amid treasures that were woefully understrength owing to lockdowns, and now hundreds of cargo-laden ships are waiting for days to dock.”

“Right now, the economy seems to be growing at a solid pace. For that reason, and because the latest variant of COVID is far less dangerous than its predecessors, the idea of continuing stimulus or support programs – such as federal additions to state unemployment – seems unnecessary,” added Earle. On the other hand, many believe the stoppage of relief programs will force many low-income into poverty. Children’s education will be hampered, and the US population will stride towards the financial debacle.