ELMIRA, N.Y. (WETM) — More stimulus payments could be on the horizon for Americans. While many legislators are moving forward with the fourth round of stimulus payment, some lawmakers are proposing a fifth.
Stimulus has been up for debate at the state and national level throughout the pandemic, but some experts are concerned about the potential side effects of increased cash flow.
“Nobody has the correct answer to this yet,” Kamala Keeley, Chemung County Chamber CEO, said.
“Well, I think we should be very concerned. The best stimulus is a job,” Rep. Fred Keller added.
Economists are worried because the latest round of stimulus is still happening, as some Americans have not cashed or received their checks.
“In most cases, the checks that haven’t been cashed are the result of the individuals who are not getting them in hand,” Keeley continued. “The best way to receive the stimulus payments is through direct deposit, which is how the majority of them were sent immediately. The paper checks take a little bit longer and there’s more chance for error in that case.”
After the May jobs report, economist remain concerned about economic development as the country enters the post pandemic world.
“From an economy level, we’re seeing some issues with inflation that we’re not sure what’s happening,” Keeley continued.
Lawmakers in Washington sent a letter to President Biden calling for two additional rounds of payments to assist people with housing, food and other payments. Republicans in the House remain skeptical of this aid as well as the $2 trillion American Rescue Plan.
“We need to reopen the economy, create jobs and make policies that incentivize them. The American Rescue Plan was the economy we had in 2019,” Rep. Keller added.
Inflation is a cause for concern, as more cash flow in the market could drive up prices and wages quickly. Many experts are keeping a close eye on how stimulus money combined with product shortages could cause price hikes.
“If people start experiencing an increase in their day to day costs like ,the cost of bread at the store, then individuals are going to think that things are more expensive than they were before and they need to go their employer and tell them they need a raise,” Keeley said.
No matter the stimulus money, local businesses are hiring, but employees are not knocking on the door.
“In most areas across the country, people still don’t have the same kind of security they had pre-pandemic,” Keeley continued.
Because of this insecurity, people are not heading back to work quickly. Republicans still believe economic reopening is the way to rebound the economy.
“I’m hearing the same thing from employers on our visits. We need to have people back in the workforce,” Rep. Keller added.