Here’s How Much Pandemic Aid Lifted Disposable Income

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That’s how much more disposable income people had in 2021 than before the pandemic—a phenomenon that’s firmly in the rearview mirror because so much government support has ended, according to a recent analysis. 

Benefits including stimulus checks and extra unemployment payments significantly boosted inflation-adjusted disposable income in 2021, economists at Goldman Sachs said in a report this week.

But in 2022, that income will likely be an average of 1% below pre-pandemic levels, they predicted, and that will slow economic growth. One major reason: the end of the expanded child tax credit payments in December and the dwindling political prospects that they’ll be brought back, Goldman said.

Fortunately, the hit to income isn’t as bad as it could have been, since people are making more money at work, Goldman said, with wages rising and jobs plentiful

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