While many Americans continue to struggle during the Coronavirus pandemic, the federal government has continued providing support. The purpose of a stimulus check is to stimulate the economy, by the government giving people money to spend.
Back in the 1930s, during the stock market crash, the US economy had reached a point where money was not worth what it used to be. So how has the recent stimulus bill impacted the economy and is it weakening the value of money?
WJPS social studies teacher Mr. Tesler expressed concern over where the stimulus money was coming from. “We don’t have trillions of dollars in reserve. How are we going to pay for it? It might be motivated by events such as the Depression, where the government didn’t react quickly enough.”
Additionally, the stimulus money may not be used as intended. According to WJPS macroecnomics teacher Mr. Mengani, “it is very likely that many people who receive the stimulus check, instead of purchasing more goods and services, may use the money instead to pay off debt they have accumulated from previous purchases of goods and services. This will undermine the intended stimulating effect of the plan.”
Currently Covid restrictions are being lifted and modified, which could present an optimistic future towards a positive turn for the economy.
Photo Credit:
“Money” by Tim Dorr is licensed under CC BY-SA 2.0
