$2,400 Fourth Stimulus Check Update – Low Income, SSA, SSDI, SSI – This Makes Sense – Fourth Stimulus Check Update 2022
The $2400 fourth stimulus check and why this number actually does make sense. I have all the details and what you need to know right here on this topic.
So yes, that’s exactly what I want to focus on right here in the tipic and explain the situation that would actually lead to a potential $2,400 stimulus check. Let’s get into it and discuss all those details. Especially during this busy time as we continue to get all these announcements out of the administration. The President lawmakers in Congress. And everything that Congress is currently working on. Including all the bills and packages Proposals and amendments reforms and raises. As well as anything going on with checks.
All right, So first up, before we get into it, I want to make this very clear, as I like to do in any topic like this, as of right now, a stimulus check has not been approved and even a stimulus check in the amount of $2,400 has not been approved either. Okay? However, let me break this information down for you because as I’ve said before in other topics and as I do in my own personal life, I like to look at history. Now, here’s the thing with history.
History doesn’t necessarily repeat itself exactly. However, it does get pretty close just about every single time, right? So maybe as we look back in history, it is not the exact same picture that we’re seeing, but rather it’s a very similar picture, right. As some people like to say, history doesn’t repeat, but it does rhyme. And I totally agree with that so let’s look into the details here because as we look back in history, we can see a very clear trend that has played out over the last 21 years or so and it’s actually showing us a very clear trajectory going forward in regards to potential stimulus checks. All right, so let’s stick with me here for a minute. Let’s go take a little trip down memory lane over the last 21 years or so. And again, I think it’s going to paint a pretty clear picture here and paint out exactly what I’m looking at and again, what may make sense next time for another round of checks. All right?
So let’s look through the details here. So way back actually, first of all, let me say this much. First, we’re going to go back and we’re going to specifically look at all the recessions that hit the United States economy over the last 21 years. So we’re keeping our eyes peeled for recessions. Recessions, very important point right there, because when recessions hit, guess what happens?
Stimulus checks. All three recessions that we’ve gone through over the last 21 years in the United States have all produced stimulus checks, every single one of them. So let’s get into it and talk through the details now. All right, not fast forward. Let’s rewind rather all the way back to the year of 2000.
What happened in 2000? Well, the Internet was still very new at that time. Surprising, kind of seems kind of weird, right? Could you imagine living without the Internet these days? How would we function?
Right, yeah Anyway, so way back in 2000, the Internet was still very new. And back then it was the.com bubble. Remember that one? Well, as a result of that, the.com bubble popped.
And what happened then? We went into a very deep recession. The United States economy went down as well as the stock market went down, about 80% to 90%, depending on the indices that you were looking at. So it went down very hard, right. Well, at that time, the United States fell into a recession.
What happened at that same time as a result of the 2000 2001 recession? Well, we actually got stimulus checks at the time, they were a huge $300. Now, here’s the thing. Looking back 22 years in the year, $2,300 had way more value than it has today. What can you get for $300 today?
Well, not much. A whole lot of not much. That’s what you can get for $300 today. That’s what’s interesting. However, back in $2,300 was like a pretty decent amount of money, right?
So in the year 2000, as a result of the recession and as a result of the.com bubble popping, we got $300 stimulus checks at the time. That was recession back then. All right, now let’s go forward to 2008 and 2009. What happened then? The subprime crisis, right.
So basically what happened then was that the United States economy yet again fell into another recession because the housing market was on a tear. It was going up very fast. A lot of people were buying houses, and unfortunately, a lot of the people that were buying houses then couldn’t afford them because they were just being approved, because basically anybody could get approved back then. Right. It was kind of a weird system that they had back then.
In 2007, the housing market was going absolutely nuts because a lot of people were just going out buying houses because you could just go out into a bank, you could just get approved for virtually any kind of loan. Basically, if you had a job of any kind of income at any point, you could be applied for and you could be approved for like a $500,000 or a million dollars house at the time. Right. Obviously, maybe it wasn’t that quite that extreme, but seriously, it was pretty extreme at the time. Well, as a result of that, as things started to hit the fan, all of a sudden we realized that, hey, wait, a bunch of people can’t afford these houses, therefore they started to have a lot of foreclosures and ultimately, at the end of the day, the economy went down with it.
So at that time, we saw the economy yet again fall into a very deep recession. At the time, the housing market fell off a cliff. Remember that? You could pick up houses back then. Again, I was not buying houses then.
I’m just simply saying I remember it because I was looking at housing prices back then because I thought it was very interesting. Right. I’m very interested by a lot of different things. I’m a very inquisitive person, I like to look at a lot of stuff because it’s very fascinating to me and I enjoy learning stuff. So as a result of that, I remember looking at prices thinking, this is nuts.
Prices on houses were so cheap because the economy or the market was flooded with the supply of houses. As a result of that, when you see a flood of prices, when you see a flood of supply coming in, prices must go down to find the demand. Well, we saw that in the housing market in 2008 and 2009, and as a result of that, there were massive layoffs, and companies were going bust. A lot of people were, unfortunately, filing bankruptcy and foreclosing on their homes as a result of that. Again, the United States economy fell into a deep recession in 2008 and finally bottomed out in early march of 2009, and again at that time, what happened then?
Well, we got $600 stimulus checks. Now let me point something out really quickly here in let me say it again, 2000 and 2001, we got $300 stimulus checks. Just about eight years later, we got $600 stimulus checks. So 300 to 600 about eight years later. Now, let’s quickly fast forward over a long period of time, from basically 2009, when everything bottomed out, early 2009 all the way out, until early 2020, when yet again, what happened?
COVID landed on our doorstep and all of a sudden everything was closed down. Massive layoffs, about 40 plus million people unemployed. The unemployment rate was very high at the time, closures all across the economy, businesses closing down, all kinds of different things as a result of COVID, because we didn’t really know what to do at the time. Right? So when in doubt, close it down.
And that’s exactly what happened. As a result of that, yet again, because of the massive economic contraction, the economy fell into another recession. Now, it was actually a very short lived recession. It was only a couple of quarters long, but nonetheless, we were still in a very deep recession at the time. The United States financial markets fell off a cliff until the Federal Reserve came in and decided to print up trillions of dollars, about $6 trillion, over the course of about a year and a half time.
And during that time, we again saw the economy go into a deep recession. However, what also happened during that time, in early 2020, we got $1,200 stimulus checks. Yes, it happened. We were all there. We all remember it.
In fact, it wasn’t even all that long ago. And if only we could get something like that again, I know it would help out a lot of people right here on this site and in the community, because I see your comments down below every single day saying, oh man, a stimulus type would be really nice these days. Yeah, it would be right. It would help out a lot of people in a big way. However, let’s look really quickly at these three dollar amounts that I threw out here over these couple of different recessions that we’ve been talking about.
2000 and 2001 recession was a $300 stimulus check. In 2008, 2009, we got a $600 stimulus check. Now in 2020, we got a $200 stimulus check. Do you see the doubling effect every single time? 300 to 600, 600 to 1200.
Now, where are we right now? Well, we’re pretty much on the cusp of another major recession. Now, does this mean we’re going to fall and crash and burn and skid our knees like we did back in 2000, 2008, and 2020? Not necessarily. But if we do, then guess what?
I would highly anticipate another round of stimulus checks. Now, again, we only have three data points to actually look at. Now, typically a lot more data points are needed in most instances to actually figure out like, what is the trajectory here? However, to be fair, when drawing trend lines, it only takes two points to draw a trend line. So in that case, we actually have three points here.
So we can actually probably draw a pretty effective trend line here.
So as a result of that, we can look at this and say, okay, $2,300 2008, $600, 2021, $200. What would be the next appropriate step here? $2,400. That would be the next double. And that’s exactly what we could anticipate.
But again, does this guarantee anything? No, not necessarily. Is it just a weird coincidence that all of these numbers have doubled during every single recession? Maybe it’s a coincidence, but I don’t know, something about it seems really weird to me. Why would it be doubling every single time?
And again, who knows? It’s all going to come down to how deep this next recession is actually going to be. Do we graze along the surface and pop right out? If so, then I would anticipate no dice on a $2,400 stimulus check. If we fall into a deep recession like what we saw in early 2020, 2008, 2009, and 2000, then by all means they’re going to be pulling out some big numbers and they’re going to be printing up trillions and trillions of dollars.
Because if that happens again, the economy is going to be in a very dark place. And how do they do it and how do they get the economy out of that? They print tons of money and they send it out in the form of stimulus to the people and businesses. And they make borrowing money very cheap. They lower interest rates down to zero in most instances and they say, hey everybody, let’s all gather around and let’s borrow some money and let’s go spend it.
Right. So they make it very easy to access capital. They make it very easy to access loans and debt. And the whole reason behind that is so that us, the consumer as well as businesses can go out and borrow money and go out and spend it in the economy and prop it back up. That’s the whole idea behind it.
Well, as of right now, with the current situation that we’re dealing with right now, we’re actually dealing with an interest rate increase type of period right now. So the whole idea behind this is the Federal Reserve is gearing up for the next recession. How are they doing that? They’re aggressively raising interest rates, which is ultimately bringing down the economy. But at the end of the day, as they bring up interest rates, by raising them through their FOMC meetings, they’re actually increasing their likelihood of another recession and they’re gearing up for that recession to actually hit.
So when the recession hits, guess what they’re going to do? They’re going to lower interest rates just like they’ve done all the other times during a recession. And then they say, hey everybody, let’s all gather around. Let’s borrow some money and let’s spend it. And what is the whole purpose of that?
To bring the economy back in after it has fallen off of a cliff. How do you bring it back? Well, you drop the tow lines down just like a bunch of printed money out of the Fed and then you send it out. And the whole idea is to bring it right back up, right. So it’s just like this big balancing act.
That’s the whole idea behind the Federal Reserve. Pretty much the whole job of the Federal Reserve is to provide liquidity. Provide liquidity as well as maintain equilibrium in the economy, right? So inflation goes down some say 2% or 3%. The whole idea then is to print a bunch of money and then of course, bring inflation back up.
Now let’s just say in the time that we’re dealing with right now, in the event of a high inflation like this, what does the Federal Reserve do? Quantitative tightening and raising interest rates. So the whole problem behind the Federal Reserve and what they’re supposed to do is maintain equilibrium in inflation and of course, the economy. So that’s what they’re trying to do right now. So as you can see here, what we’re currently dealing with right now is a massive imbalance right now.
Right now we are way out of balance. Right now the equilibrium in the economy is way out of whack, right? They need to bring it back into equilibrium. So the best way that you can picture equilibrium and what it actually is. Picture a mountain range, right?
So you see a mountain range, it looks pretty nice, right? So you see the big high peaks and you see the low valleys, right? So basically, if you drew a line right through the middle, a horizontal line right through the mountains or right through the mountain range, it’s an equal line between the highest peaks and the lowest valleys. There’s a line going right through the middle, equally spaced between them. That is equilibrium, right?
So just like the Federal Reserve does, we see spikes in inflation just like the top of the mountains, and we see drops off in the economy and inflation and all these other things, economic activity. And that would be the lowest low of the valley, while the Federal Reserve and their goal is to maintain that middle line equilibrium. That’s the whole idea behind it. So anyway, I hope this gives you kind of a better look at what I’ve been looking at here. And again, just based on history does not mean at all that this is actually going to happen with the next recession.
But again, it all depends on how deep is the recession going to get. That’s what we really need to watch here. That is going to be the key factor. How deep is the recession going to be? How prolonged are they anticipating it’s going to last?
And realistically, what is going on with the job market? That is very, very important. They always look at jobs. Jobs is a very important factor because if people aren’t working and people are not producing tax revenues, that’s not very good, right? If there’s no tax revenues coming into the governments and if there’s no production as in productivity, then guess what?
Our output, as in our GDP is going down. Not good. We need to have people producing. We need to have people working businesses producing. Therefore that contributes to the GDP total output of the United States.
Right? So again, as I’ve said so many times now, it’s all highly correlated and why we’ve got to watch everything closely because anything like this that slips could impact the rest of the economy and everything else going on anyway. So that person that was asking, and again, I’ve seen this comment down below a few different times over the last several weeks. Here some people reaching out saying, hey, where are these numbers coming from? And can you explain?
Well, there you go. I hope this explains it. But again, this is all just based on history. Looking back in history, at the last three stimulus checks that we received over the last 21 or so years, right, $2,300, 2008, $600, and 2021, $200. Just a simple doubling effect every single time.
So this may actually indicate that possibly the next recession could potentially produce $2,400 checks. It does not guarantee anything. I want to make that very clear. It does not guarantee anything at all. It doesn’t even guarantee a check at all.
It does not guarantee a $2,400 check. I’m just simply looking at history saying well the trend is showing something here. Very interesting, the checks continue to double every single time. So of course, as always I’ll continue watching everything closely as I do get more information on any of this information, I’ll be right here for you breaking it down, let you know what’s going on and how this may impact you, your money, your benefits, your lifestyle, your bank account and ultimately everything else going on.
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