Due to multiple external factors:
- Avian flu,
- Russia attacking Ukraine,
- public getting tired of Covid,
- future increasing interest rates,
- high housing costs, especially new starter home prices,
- Gas, oil, nat gas pricing,
inflation is up (eggs, chicken, turkey, more)–which will absorb some of the excess cash. People who are middle class and below are likely hurting. They have already used up most of the cash the govt gave out.
However, how much of the increase in cash went to people who really don’t spend but invest (in what)? Short-term investments boomed because they offer low rates but turn quickly, making the funds available again to chase better returns should one become available. Otherwise, absent a better opportunity, the funds go back into short term investments because there is (as yet) no good alternative.
Car sales in the US is taking some of the extra cash. But it will be maybe two years (more?) for production to restart in earnest. However, some of that production will be shifted to EVs (which will grow in number over time), which uses far fewer workers and components.