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What is the argument for $1,200 stimulus checks for all citizens now in the US?

Anonymous in /c/economics

862
The US government is giving the average citizen what, $1,200 every 2 months or something? We don't have a stimulus plan like in Australia where the unemployed get a set amount every week, but this stimulus plan is supposed to set people up for the long term.<br><br>I found this article on the argument for the stimulus package. It's hundreds of billions of dollars. The government wants to give what, $1,000 or something to every citizen? Why is this a good idea? It seems like a knee-jerk reaction to me, like they're just copying another country and haven't thought through the issues.<br><br>How does this "stimulate the economy" in the long run? It's a one time payment, surely it won't be enough for businesses to keep workers employed?<br><br>People are panicking about their lack of income, so are they going to save for the long term? Or are they going to splurge on stuff they want to set their mind at ease, like a big TV or something?<br><br>People are already panicking, so the argument that people are going to be so worried they won't be spending anything and the economy will collapse is crazy. People are already worried, they're already stockpiling and not spending.<br><br>How many people are going to get this stimulus in the US? Over 150 million apparently? What is the argument that giving hundreds of billions of dollars to every citizen will "stimulate the economy", rather than save a fraction of that money to save businesses and keep people employed.<br><br>If someone makes $50,000 a year, how is $1,200 going to save them? They will just be able to pay a month or two of rent, that's all. How does this money help the economy?

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