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Question for economists: If you give everybody in the US $500 in food credits per month, do food prices go up, or do wages go down? Edit: Let's say there's an

Question for economists: If you give everybody in the US $500 in food credits per month, do food prices go up, or do wages go down? Edit: Let's say there's an expiry function on the credits. Something like you get to keep 50% of the credits if they rollover.

Alyoshi 3y ago
in general that scenario means both go up, although i’m sure you can find weird edge cases. edit: for example, expiration of credit funds could lead to a reduction in wages if it meant less money is spent in the economy than taxed in it.