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Why not everyone in the US likes stimulus checks
And why the US wants inflation. Explained by fish.
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The US government has sent checks to millions of Americans during the economic crisis caused by the pandemic. But some economists are concerned that all that government spending could lead to inflation. If everyone suddenly has $1,200 more to spend, what will that do to the economy? Will it lead to prices going up, and money losing its value?
But the consensus among most economists, including those in charge of steering the US economy, is that we actually want some inflation. And to understand why, it helps to think of the US economy as a fish tank.
Read more about inflation on Vox.com:
https://www.vox.com/policy-and-politics/22346376/inflation-rate-explained-federal-reserve
And more about the "Sahm rule" to send out checks automatically at the start of a recession:
https://www.vox.com/future-perfect/2020/3/26/21194227/did-the-stimulus-package-get-passed-checks
Note: The headline on this video has been updated.
Previous headline: Why the US wants inflation
Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com.
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