A new poll conducted by Morning Consult and commissioned by Bloomberg concluded that more than one-third of recipients of the $1,400 stimulus check that President Joe Biden sent Congress to approve as a measure in the face of the CCP Virus crisis don’t need it and therefore will save it rather than spend it. This is a huge, meaningless federal expenditure funded by taxpayers.
According to Morning Consult survey results, 34% of Americans plan to put the third cash payment into savings, rather than injecting it into the market in line with the purpose of the measure.
In comparison, 30% of those surveyed said they would spend the money on food, 22% on housing and 18% on credit card debt, the latter expenses being those expected for this type of incentive designed exclusively to cushion specific crisis situations, where high unemployment rates generate a retraction in consumption and consequently produce a vicious circle that translates into business closures and even more unemployment.
But, when the aid reaches hands that do not need it, so instead of generating more consumption, it ends up in savings, it only implies an unnecessary expenditure of federal funds that immediately translates into inflation, which hurts precisely those who need those funds the most.
According to a Fox News analysis of the survey, the proportion of people who said they intended to save the stimulus payment was highest among the wealthiest respondents, with 41% of households earning over $100,000 or more saying they would save the money, along with 37% of households earning between $50,000 and $100,000 annually.
Nearly a month ago, when Biden’s bill had not yet been officially introduced, a bipartisan group of senators came out with blistering criticism of Biden’s proposal for a stimulus plan aimed at addressing the pandemic, suggesting the White House is providing too much money “to high-income Americans.”
The bipartisan group of senators, led by Democrat Joe Manchin, criticized the measures not only for the exaggerated amounts, but for the misallocation of the money, as it “involves enormous federal spending that may be totally wasted if the funds do not reach the hands that truly need them.”
Inflationary context in the US
Following the cancellation of the Keystone XL pipeline project, U.S. oil producers cut production and consequently raised prices in anticipation of more regulations that will lead to a further drop in oil supply and higher gasoline prices.
The average retail price of gasoline in the United States is now $2.50 per gallon when the average price during 2020 was $1.74. Since Biden took office the price of gas has continued to gradually increase. And in the event of another shutdown like the Dakota pipeline, the consequences could be terrible.
If the Biden administration continues its campaign against pipelines, fracking, and oil production, Americans will face record gasoline prices in a few years, which automatically translates into an inflationary process that, added to the waste of federal funds and in a situation of high unemployment like the current one, the future of the United States could be catastrophic.