What Will Biden's 1.9 Trillion Dollars Stimulus Do For The Economy
- The Money Trade
- Jan 25, 2021
- 2 min read
A trillion dollars is considered big money, and I don't know if someone on earth has that net worth. The average common person don't really know why the government give stimulus packages to Americans. Most think it's about putting a few dollars in their pockets, and it's fact people really can use an extra few bucks in their pockets.
The reality is $1200, or whatever else was given, is not enough to feed a family, but folks will take what they can. There were church's giving out free food during the pandemic, which is widely considered a noble thing. The problem with that is that the foods is no good. They can at least give people healthy food, but what are people to do when their hungry.
For a clear understanding of a stimulus package: In economics, stimulus refers to attempts to use monetary or fiscal policy to stimulate the economy.
So as we can see it's there to stimulate the economy. Their hoping people will run right out to spend the money because it stimulates the economy. Without consumers spending money the economy will stall. The problem with these stimulus packages is that it inflates the economy. Inflation is the decline of purchasing power of a given currency over time.
Analysis predict that a crash is eminent. Any economist will say a market crash is historically bound to happen. I will tell investors not to make erratic Investments and follow smart money. The will have it's crashes, but will never crash all the way out. If the market stalls the government will produce a stimulus package.
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