At the end of July, rock and roll Hall-of-Famer and long-bearded bassist and vocalist from ZZ Top, Dusty Hill, sadly passed away at the age of 72. You may remember Dusty as one part of the iconic three-member band from Texas who spent more than 50 years rocking.
As a tribute to Dusty and an ode to the current state of the U.S. economy, we dedicate this edition of “Song of the Week” to ZZ Top’s song “Just Got Paid.”
Seems fitting as American families are set to receive another round of U.S. government stimulus payments. Meanwhile, the proposed infrastructure plan pushes closer to funding repairs and improvements for America's roads, bridges, and broadband networks.
Let’s dive in.
Family Tax Credit - Last month, a new round of checks began hitting the bank accounts of families with children under the age of 18. These payments are being provided as an advance for half of the usual tax credit families would receive at tax time. Cue ZZ Top’s lyrics:
I just got paid today
Got me a pocket full of change
Said, I just got paid today
Got me a pocket full of change
According to the IRS, from July to December, more than 36 million households will receive up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17, providing they meet minimum household income requirements.
These payments come just in time for the back-to-school retail push (and will continue through the holiday shopping season), which could help the economy in the second half of the year.
A Much-Needed Infrastructure Boost - The Child Tax Credit checks were not the only new stimulus push in recent weeks. There was also progress on the $550 billion bipartisan infrastructure bill. The Senate recently introduced their bill after months of negotiations, in hopes that it will be passed as soon as this week.
While these funds will not be seen as immediately as the child credit checks, the spending on transportation, utilities, and broadband will certainly boost the economy over the next several years.
Who’s Got the Tab? - The government remains committed to stimulating the economy, which is good news for the markets. But the question is: What price will we pay for all of this stimulus? The answer – inflation.
We’ll see how increased government spending will ultimately playout for the U.S. economy over time. But this week, we remember the great Dusty Hill and enjoy the current hot economy in our country.
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