New government data shows that millions of Americans have been forced to fight a protracted battle for life after the epidemic relief programs, especially the stimulus checks, were stopped for poor and moderate-income Americans. When the federal administration abruptly snatched away all federal support measures for the people severely affected by the pandemic, the fleeting light at the end of the tunnel that they had glimpsed vanished.
Four out of every ten Americans have been particularly adversely hit by the pandemic’s economic collapse. In the absence of fresh stimulus checks, many are straining to put food on the table, pay their rent and energy bills, buy petrol, and buy other essentials.
Since last spring, there has been a 50% increase in the number of persons who are having difficulty in making ends meet on their current income. However, the Republican opposition, some officials, and the corporate media have started to promote austerity measures in Washington. The average people, they claimed, would have to endure even more suffering if the government wanted to control inflation.
Corporates Perpetrating A Lie About The Stimulus Check Being Behind The Inflation
However, data show that rather than wages or consumer spending, corporate profits and supply chain bottlenecks have been the main drivers of inflation. Every increase in the cost of gasoline and other necessities has been a windfall for large corporations, particularly oil companies.
The constant increase in prices assured that companies were profiting more and more from the current terrible situation at a time when people were cutting back on their expenditures.
According to data, increasing Social Security benefits and removing student loan debt would not be as catastrophic as initially thought and would even help to stimulate the economy and the market. Time and again, it has been demonstrated that direct aid improves companies’ and the general public’s economic prospects almost immediately.
In the first two quarters of 2021, fewer people reported having financial issues. That resulted from the addition of the unemployment benefits to the benefits of the stimulus check. In addition to the $2,000 and more that individuals got from the federal government, the extra $300 weekly stimulus check turned out to be a pleasant addition.
The expanded child tax credit stimulus check, which benefited families with children, came right after the unemployment stimulus checks. Families with children received stimulus payments between $250 and $300 every month depending on the age of the children, so they did not have to be concerned about their children being hungry for the remainder of the year.
The End Of The Benefits Led To An Increasing In Sufferings
A sharp rise in inflation signaled the end of federal pandemic aid. Consequently, Americans who are having severe difficulty covering basic household expenses have increased by an astonishing 49 percent since April.
Since May and June, 13 percent more Americans have reported experiencing financial stress, the situation has substantially gotten worse. Since the Census Bureau began keeping statistics in August 2020, this number is the highest it has ever been.
It is clear that the cancellation of the pandemic stimulus checks is what has caused the overall financial situation to worsen. Before they terminated in September 2021, the majority of Republican states sought to abolish all federal unemployment benefits. The Republicans’ lack of cooperation caused the expanded unemployment programs to come to an abrupt halt in September.
Despite the efforts, the expanded child tax credit stimulus check, which grew from $2,000 annually to between $3,000 and $3,600 annually, was allowed to expire in December 2021 despite the efforts of President Biden to at least extend the lifespan of this stimulus check by at least a couple of years.
The $1,400 economic impact payment, a third stimulus check that was included in the American Rescue Plan Act signed by President Biden in March 2021, has been targeted for criticism by the Republicans.
Record Inflation Compounds Woes Of Citizens
Americans are suffering from a record rise in the cost of necessities, especially gasoline, which has doubled in price over the previous two years, as a result of the record inflation rate, which has accelerated the economy’s slow but steady recovery.
For two consecutive quarters, the inflation rate has consistently surpassed 8.5 percent, and in July it surpassed the 9.1 percent threshold. There doesn’t seem to be any quick solution in sight.
Congress Inaction Continues To Be The Trend
Due to an inactive Congress, financial hardship for low- and moderate-income households is expected to worsen. If Democrats don’t extend the subsidies they passed in 2021, Americans with individual health insurance plans may see a steep increase in premiums in 2023. Without this necessary extension, policyholders will be notified of a premium hike in October, with the midterm elections taking place in November.
When the Biden administration deems it over, the federal government’s initial designation of a public health emergency will formally expire. As a result, 14 million Americans will find themselves unexpectedly without Medicaid coverage, even though states are given the priority to kick millions of Americans off of Medicaid.
Right-wing media house Bloomberg News stressed that the federal administration needs to end these emergency programs.
States Start Sending Residents Stimulus Checks
Many states have taken action to assist citizens who are still struggling, even while the federal government is still unable to advance stimulus money. The fact that inflation and gas prices are out of control is acknowledged by lawmakers. And if you reside in one of the dozen or more of those states, you may receive a small windfall.
While California and Hawaii may soon follow following, Maine and New Mexico are the first states to deliver stimulus checks to their populations. Due to a strong 2021, the states that are disbursing stimulus checks have more money in their budgets.