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Ah of course, the stimulus check story. Indeed, 1200$ one-off checks caused this recession. /s
by yunohn 4y ago
Ah of course, the stimulus check story. Indeed, 1200$ one-off checks caused this recession. /s
- pb7 4y agoIt was like $5T in total stimulus.
- marcyb5st 4y agoYou're correct! I used stimulus checks as an umbrella term, but it's not correct. But I meant all the measures that pumped a lot of money into the economy. Here in Italy loans were frozen for 2 years which equals to a much bigger injection.
- eastbound 4y ago1200$ x 320 million americans = 1 trillion dollars [1]. Meanwhile less work has been produced. [1] It’s the official number, not a mistake or a ballpark. https://www.gao.gov/products/gao-22-106044 https://www.gao.gov/products/gao-22-106044
- fragmede 4y agoNo but $500k PPP loans all over the place probably did affect the economy.
- Godel_unicode 4y agoDidn’t those mostly just mean that people kept getting their same salaries?
- prottog 4y agoWhen supply remains the same or declines at the same time demand goes through the roof through a combination of lockdowns and helicopter money (as the other commenter points out, government sources show nearly $1T in direct payments), big time inflation happens. Said inflation is most likely the biggest culprit behind this (or upcoming, depending on how you define it) recession. Disposable income is evaporating and people are adjusting their purchasing behaviors. After all, who wants to buy anything they don't have to, when they feel that everything is so much more expensive than it should be?