Will There Be Another Stimulus Check?

Many folks are hoping for a fourth round of stimulation. However, a succession of catastrophic occurrences will almost certainly be required for a follow-up round to be permitted.

Many folks were ecstatic to get $1,400 stimulus cheques when the American Rescue Plan was signed into law in mid-March. In fact, many people are still hoping for a fourth stimulus check, if not this year, then early next year.

However, the chances of a second stimulus round are dwindling at this moment. The economy is substantially better now than when the American Rescue Plan was enacted. We’re also in a different position with the pandemic now that coronavirus vaccinations are widely available.

Still, it’s feasible that another stimulus package will be announced in the near future. However, these circumstances would very certainly have to occur in order for that to happen.

1. The unemployment rate rises dramatically.

The national unemployment rate hit a new high of 14.8 percent in April of 2020. The unemployment rate had dropped to 6% by March 2021. The unemployment rate was 5.9% in June, the most recent month for which data is available. As businesses prepare to reopen in full, there’s a high possibility the unemployment rate will continue to fall. It will be tough to justify another stimulus package if unemployment continues to fall. However, if the unemployment situation continues to deteriorate, another round of stimulus payments may be made. To be clear, the unemployment rate would have to rise significantly for this to happen. It won’t be enough to warrant a fourth stimulus check if it increases to 6% or 6.1 percent in July or August.

2. The outbreak becomes more severe.

Unfortunately, the highly transmissible Delta variation is currently the most common COVID-19 strain in the country, and the outbreak has been spreading in recent weeks. Fortunately, things aren’t as bad as they were at the onset of the pandemic or even during the winter surges last year. However, the situation is so dire that the CDC recently reversed its position on mask use and now recommends that even fully vaccinated adults use a mask when indoors in a public setting. If the disease truly spreads, it could lead to more relief negotiations, which could result in another stimulus check.

3. States begin to shut down once more.

Many states enforced lockdowns early in the pandemic to try to stop COVID-19 from spreading. This meant that nonessential firms were prohibited from operating, resulting in the loss of millions of jobs in a matter of weeks. While we may not see the same level of drastic shutdowns at this point in the epidemic, states may impose limitations and capacity constraints on enterprises once more. As a result, many local economic recovery efforts may be hampered. And if that happens, it will be easier to argue that the public requires more direct assistance.

You don’t want another stimulus check.

While a fourth stimulus check would be ideal, the reality is that none of the aforementioned scenarios should be desired. While it would be premature to rule out another stimulus package, we should concentrate our efforts on hoping we won’t need one. Besides, there are other methods to acquire a windfall besides a stimulus check, such as getting a side job to supplement your income. Parents who qualify for the Child Tax Credit will get monthly payments until the end of the year, as well as a lump sum payment in 2022. While more stimulus money may not be available, there are alternative methods for Americans to enhance their bank accounts.

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