Question

Since the start of the pandemic, Americans received financial support from the government through stimulus checks in response to a sharp decline in the nation’s well-being. At the beginning of 2020, after the first release of stimulus checks, all political parties began arguing whether these payments would help or harm the economy in the long run. Some believe that the stimulus payments increased the unemployment rate, along with the rise of inflation. Others argue that the stimulus checks provided a safety net for those who struggled to make ends meet and helped businesses stay open and running, allowing them the opportunity to keep their businesses’ source of income flowing (Marcelo). Therefore, the current question is, were U.S. government stimulus payments to individuals and companies during the COVID-19 crisis more helpful or harmful to the US economy?

Some people argue that the stimulus payments that began in early 2020 have financially benefited American households by helping people pay off their debts and bills and add to their savings accounts, creating a sense of stability for many working-class Americans in the U.S. Those given a stimulus check chose to use it by either saving, spending, or paying off their debt. These stimulus checks eventually lead to decreased unemployment, providing financial stability and improving the well-being of those given stimulus money from early 2020 to late 2021. (Marcelo). Critics suggest that the primary goal of economic stimulus is to encourage economic activity by boosting the economy, which can be achieved by applying monetary and fiscal policies. Economic stimulus is a plan to boost the economy, increase job opportunities, and restore consumer spending through fiscal policy. Fiscal policy is using government spending and tax policies to influence financial decisions. Monetary policy controls the amount of money available in the economy in the hands of the nation’s central banks that is used to evenly distribute amongst other banks, consumers, and businesses to promote economic growth. (Investopedia Team). Still, others contend that the economy continues to struggle financially due to inflation in response to the stimulus checks that were given out in 2020. They argue that while there were some beneficial gains from the payments, including the drop in the poverty rate and providing a safety cushion for workers, the long-term effects conclude there were longer-lasting negative impacts than the temporary financial gains received. (Santul and Thomson-DeVeaux).
4 works cited oages needed below
The question concerning the correlation between stimulus payments and effects on the economy is very controversial. Some believe that the checks given out during the COVID-19 crisis in the U.S. lead to the rise of inflation along with the increase in the unemployment rate. On the other hand, others believe that the stimulus checks provided a financial safety net, allowing those affected by the pandemic the ability to pay their bills. Companies were able to keep their businesses running, furthermore granting them the ability to continue receiving a steady flow of income.
How could I justify my point of view, that the stimulus payments from the pandemic harmed the economy?

Answer 1

Example of covid-19

Step-by-step explanation:

The Downsides of Stimulus Checks That Nobody Talks About

Tax Refund Shock When There Are No More Checks. ...

They Become Expected During Economic Hardships. ...

Stimulus Aid Can Help Fuel Inflation. ...

It Can Cause Surprises During Tax Season. ...

It Doesn't Make Financial Hardship Go Away. ...

It's Not a Solution. ...

The Stimulus Was Politicized.