Inflation has been a major thorn in the side of the American people this year. One huge reason for this deals with more spending in Washington DC getting passed via legislation.
Thus far, Democrats have controlled the Senate and the House, meaning they could get bills like the Inflation Reduction Act and the American Rescue Plan passed without a single GOP vote.
Unfortunately, this has created a disaster for the American people where goods and living expenses are costing more than most can afford.
In response to these growing living costs, government handouts of up to $600 have been offered. Though The Sun reports that the time for eligible Americans to pursue these handouts is quickly running out.
The Clock is Running Out
On Thursday, a 48-hour clock started for full-time residents of Idaho to recieve various rebates of up to $600. However, in order to qualify for these rebates, Americans have to turn in their tax returns for the years 2020 and 2021.
The rebates being offered are not free money, despite what some proponents of the progam may claim. Furthermore, governments that have offered handouts of this nature to fight inflation are coming under increasing scrutiny.
Families are paying the cost of Joe Biden's inflation tax at the grocery store. pic.twitter.com/UNkDCJfYXR
— House Republicans (@HouseGOP) December 26, 2022
It is the view of many Americans that reducing inflation will not come about by simply handing out more money. A better course of action would be lowering spending at the federal level so the market can adjust prices on its own.
The failure of inflation relief handouts follows the same principle as why raising the minimum wage to bring down costs also has a tendency to fail.
Trouble Ahead in 2023?
Given the current state of the economy, there are already multiple predictions that 2023 is going to bring about a recession. Higher interest rates, more unemployment, and a series of other problems are expected to materialize.
Many critics of the Biden administration have faulted the federal government’s spending as a key factor that’s brought the nation into its current predicament.
First half of 2023 will suck.
Second half of 2023 will be better.
First half = higher rates, deflation concerns, disappointing earnings, increased unemployment, recession hits, economy breaks.
Second half = fed cuts interest rates, recovery begins.
Bull Market Kicks Off 2024.
— Danny Devan (@dannydevan) December 30, 2022
$600 handouts from the government can only do so much. They certainly aren’t going to prepare people for the economic donwturns being predicted to arrive in the new year.
With 2022 coming to a close, Americans will ultimately have to wait and see what the full consequences are of inflation relief payments and other measures taken in the name of fixing the economy.
So far, the spending packages known as the American Recuse Plan and Inflation Reduction Act have not even come close to living up to their names.
What do you think about government payments being given to Americans in the name of fighting inflation? Feel free to let us know in the comments section below if you believe these sorts of handouts are going to do more harm than good.