Government Stimulus during the pandemic

• Where did stimulus money come from

  1. debt-government borrowing
• Did increases unemployment benefits disincentivize people form going back to work

  1. no because there wasn't work to go back to
• How has this impacted inflation

  1. didn't have a large impact on inflation at the time - people saved their money -> consumers were very cautious with their money
  2. business didn't want to invest in things
  3. consumer didn't chase goods and services they didn't need
• Should we be concerned that the stimulus has put the government into significant debt?

  1. other option - collapse of economy (causing people to die because they cannot afford necessitates)
  2. two options: recession to go into debt (interest rates were low)
• Can the positive effects of the stimulus in the US and Canada be shown

  1. household didn't fall - studies show some went up
  2. poverty rate didn't go up significantly either