News Number of the Day Here’s How Much Pandemic Aid Lifted Disposable Income Number of the Day: The most relevant or interesting figure in personal finance By The Balance Editors The Balance Editors We’re a team of writers and editors with decades of experience researching and answering questions about personal finances. We believe everyone should feel confident when making money decisions, and that passion drives us to make The Balance the best place to learn about finances. learn about our editorial policies Published on February 2, 2022 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. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit