There's Plenty of Stimulus Fuel Left to Drive the Economy
Money saved from relief checks and rising property values provide lots of cash still waiting to be spent. Some of it should go to fill jobs.
Plenty of money to pay drivers more.
Photographer: Frederic J. Brown/AFP via Getty Images
As Democrats struggled to find agreement on a pair of infrastructure bills, some have been concerned that the waning impact of fiscal stimulus will act as a drag on economic growth just when the economy is struggling with supply-chain problems. But that thinking is too simplistic; while some pandemic relief programs are winding down, there's still plenty of fuel in the system to keep this recovery moving ahead.
The American Rescue Plan passed in March was a massive $1.9 trillion, and while much of that has been disbursed or set to expire — such as the enhanced unemployment benefits earlier this month — a large chunk of it has yet to be spent. State and local governments are still figuring out what to do with the $350 billion they were allocated. Child tax credit checks that started going out this summer will continue through the end of the year. Of the hundreds of billions of dollars sent out in the form of $1,400 relief checks, it's unclear how much was spent versus saved. Household cash balances remain well above pre-pandemic levels thanks to multiple rounds of fiscal stimulus and a lack of spending on services like dining and travel, for instance.