Where Did The Stimulus Money Come From
Where Did The Stimulus Money Come From. People such as senator cruz of texas or paul of kentucky have a very hard time understanding that the us dollar is a fiat currency. Mint headquarters in washington d.c.
When politicians make use of the term "stimulus" they usually mean the government's spending. For economists, stimulus can be a part of spending however not every expenditure is "stimulus."
Why isn't every spending transaction being considered to be a valid type of "stimulus?" We assess "stimulus" by looking at its effects, including the magnitude of multiplier effect (additional money resulting from initial spending) and the velocity effect (the speed at which dollars are circulating in the economy), and whether the effect is immediate. We also determine whether the spending is coming from existing revenue sources or of borrowed funds, as each of these has distinct ancillary consequences.
Moreover, not all "stimulus" is government spending; "stimulus" can be the opposite, tax cuts. Tax cuts, along with spending in the sense that they are an application of government revenues. When taxes are cut the government is encouraging private sector investment, which in the right situation can be a major impact immediately and massive multiplier and velocity effect.
The differences between the types of spending and their effects on the economy are essential. What's a basic example of spending that is immediate but has no potential for a multiplier or turn around effect? Let's suppose you drink five glasses of water each day.
Suppose as an "stimulus" the government paid you to drink an additional or six glasses of water today. It's a direct result to increase water production and consumption. But once the glass water has been drunk, there will be no multiplyer. All the government bought was one glass of water beyond normal. In order to obtain the next glass drunk, it is the responsibility of the government to pay yet again. When the government stops paying you, your drinking will cease. Since it does not promote the habit of drinking continuously by you or any other person, there is no multiplier effect or speed.
We already had $23 trillion in debt we've promised to pay off. But they aren't firing up the machines to print a billion or a trillion dollars. The money is borrowed from the federal reserve (a private bank, look it up) on interest and this in turn causes inflation (printing money out of thin air).
With The House And Senate Officially.
The government then uses that money to send stimulus checks to struggling and out of work americans. If you follow this cycle, it becomes obvious that all this stimulus spending will. Single taxpayers who earn less than $75,000 a year and couples who file jointly and make less than $150,000 a year will receive $350 per taxpayer and another $350 if they have.
What May Surprise You Is.
Where does stimulus money come from? “what the treasury department does is they create bonds, bills,. Supplemental security income recipients are set to receive the first of two september payments of $841 in only one day.
By Colin Barr, Senior Writer January 26, 2010:
But they aren't firing up the machines to print a billion or a trillion dollars. Is quite literally the building in charge of printing money. Thanks to a historic state budget surplus, georgia residents who filed both their 2020 and 2021 tax returns are eligible to receive rebate payments.
But When It Comes To Where Stimulus And Unemployment Money Comes.
The money is borrowed from the federal reserve (a private bank, look it up) on interest and this in turn causes inflation (printing money out of thin air). Stimulus money does not come from 401k’s, it does not come from taxes, it does not come from social security. Brand and generic products for sale.
People Such As Senator Cruz Of Texas Or Paul Of Kentucky Have A Very Hard Time Understanding That The Us Dollar Is A Fiat Currency.
The third stimulus is officially on its way into the hands of american citizens. Supplemental security income beneficiaries will get two checks in september, for a maximum sum of $1,682. Instead, the federal reserve simply adjusts their books and delivers a form of computer currency to the.
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