The economic stimulus package approved by the Federal government in August 2021 is the third such package since the introduction of the global credit crunch. Economic stimulus packages have been used to jump-start economic activity and stop it from declining. When a country is struggling with high levels of debt that is not easily repaid, it is difficult for the economy to recover. Creditors are in a position where they can charge whatever they like; they have also gained the perception that no one will be in any trouble to repay what they owe. As a result, the creditors have come to terms with the fact that they might have to foreclose property or even go to the extent of forced foreclosure in order to recoup some debts.
This has led to the rise in foreclosure rates across the United States. It would not be unusual if more than half of all single family homes in the country were at risk of foreclosure. Because economic stimulus programs are meant to stabilize financial markets, the lenders have realized that they cannot expect the housing market to rebound as quickly as they had expected. In addition, with unemployment on the rise, it has become increasingly difficult for people to find jobs.
The administration has had to resort to various measures in order to bring about a change in the faltering economy. One of these measures is the economic stimulus schedule released by the Federal Reserve. The purpose of the stimulus package was to prevent a major recession. The package pumped $600 billion into the banking system and offered banks and other financial institutions' long-term debt relief. This has helped to bring down mortgage rates to an all time low.
The long-term effect of this economic stimulus plan has yet to be felt. Homeowners are still waiting for the homes that they want to buy to go on sale. Interest rates on housing loans have remained fairly low and this has resulted in fewer mortgage applications. Another positive impact of the package has been the creation of millions of jobs. The creation of these jobs has not yet reached its peak and more job creation is expected in the months and years ahead.
As mentioned, one of the key components of the economic stimulus plan is the stimulus package that is being implemented now. The Consumer Financial Protection Bureau has been busy in making sure that those who are being affected by the recession are not exploited by those who wish to profit from their suffering. The CPB has been busy in collecting information on the identities and the contact details of many individuals who may have suffered financial abuses. These agencies have identified more than one million defaulters of mortgage loans who are eligible for the government's loan modification program.
With this in mind, one should see the economic stimulus schedule as something that can truly work for one's benefit. The government may not fully reap the benefits of the economic stimulus . . . . . . package in the near future. However, the more immediate effects that the stimulus plan has had on the economy have been quite impressive. This has also helped to push many people towards supporting the plan in order to benefit from it.