Over the last century, most business operators have been experiencing losing a lot as their business undergoes closure due to a lack of capital. The lack of money has led to the economy’s downfall by reducing employment in the community. The government has introduced a stimulus check, encouraging consumers to spend more on their daily activities. A stimulus check is sent to taxpaying consumers to boost the economy as it provides funds for them to consume.
Unemployment is the main issue affecting stimulus checks as it reduces government spending on various projects. During the Coronavirus, outbreak government presented a stimulus check for consumers to uplift their businesses (Omar et al., 2020). As the pandemic led to the shutdown of many organizations, many economic activities were inactive, reducing the tax payment, which affected the source of revenue. As a result, the business closure decreased the gross domestic product (GDP), which involved economic expansion.
The spending rate decreased after the outbreak in the global nation, which reduced the number of consumers. For instance, accessing other countries was not necessarily due to the lockdown rules implemented to control the spread of the disease. Therefore, consumers considered it a good idea to save their previous earnings for future use (Min et al., 2019). Savings have affected the stimulus check as it does not increase employment in the community.
The government must stop issuing large debts to settle the economic challenge fully. Most firm holders fail to pay back their debt, making it hard for the government to refund other projects. The pandemic was a disadvantage to the united states government as the affected victims spent more while buying medicines. The stimulus check offered included a high economic relief bill to deal with the pandemic (Romer, 202). The relief made the government undergo high debt levels, making it economically unstable.
In conclusion, unemployment has affected most global nations as most people have no capital to start their businesses and nowhere to rely. It has reduced economic expansion by decreasing the gross domestic product. Most consumers have lowered their spending rate as they fear how they will purchase other products if they spend a lot. Unemployment may lead to poverty as accessing various products is challenging, making them expire due to long storage.
References
Min, S., So, K. K. F., & Jeong, M. (2019). Consumer adoption of the Uber mobile application: Insights from diffusion of innovation theory and technology acceptance model. Journal of Travel & Tourism Marketing, 36(7), 770-783. Web.
Omar, A. R. C., Ishak, S., & Jusoh, M. A. (2020). The impact of Covid-19 Movement Control Order on SMEs’ businesses and survival strategies. Geografia, 16(2), 139-150. Web.
Romer, C. D. (2021). The fiscal policy response to the pandemic. Brookings Papers on Economic Activity, 89-110. Web.