Yesterday Brett and Cal received their third stimulus checks of the pandemic. Cal texted me early this morning to tell me how excited he was to get the $1400. He planned to put half of it in savings and the other half in his TD Ameritrade account. Brett was a lot more low key about the check. He did have plans for it. He was going to put $1000 in his savings and split the rest between his taxes and car payment. Overall, however, he was really concerned about the upcoming reports of high inflation this summer and how that would affect his finances.
Doug and I were more on the same page as Brett. Although the excess government spending on the Covid Relief Bill wasn't all to blame, I had listened this week to a financial report that outlined the increase in taxes that the Biden administration would have to pass to help fund the bill. The increased amount on utility companies would be passed directly on to consumers. That, along with the proposed tax hike on gasoline, would cost the average American family an extra $2000 a year. Doug wasn't as concerned about the tax increases as he was about the predicted shortage in the labor market and supplies for products. He knew from experience that those two issues would only drive prices up directly affecting inflation rates.
Hopefully, this will be the end of any type of "Covid Relief" as well as the extra unemployment benefits that only encouraged workers to stay home. The economic recovery of our country should rely on opening businesses and getting people back to work, not government handouts. The old Chinese proverb below says it best. I wish those in charge would take it to heart.
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