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How Can a Stimulus Help the Economy?

The Covid-19 pandemic sent the US economy into the worse fall since the Great Depression. Things have still not recovered and whole sectors of the economy suffer substantial, lasting unemployment. Congress is haggling over stimulus measures. How can a stimulus help the economy? https://youtu.be/zmSQBBeNE0A

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How Can a Stimulus Help
the Economy?
By
www.ProfitableInvestingTips.com
https://profitableinvestingtips.com/profitable-
investing-tips/how-can-a-stimulus-help-the-
economy
The Covid-19 pandemic sent the US
economy into the worse fall since the
Great Depression. Things have still not
recovered and whole sectors of the
economy suffer substantial, lasting
unemployment. Congress is haggling over
stimulus measures. How can a stimulus
help the economy?
https://profitableinvestingtips.com/profitable-
investing-tips/how-can-a-stimulus-help-the-
economy
Although there is a legitimate concern about
borrowing more money on top of an
already-huge Federal deficit it did not
seem to bother anyone when they passed
the Trump tax cuts. And those did not
result in a substantial increase in hiring or
wages. We look at the issue of stimulus
payment in its various parts. The first
distinction to be made is the difference
between relief and stimulus.
https://profitableinvestingtips.com/profitable-
investing-tips/how-can-a-stimulus-help-the-
economy
Relief vs Stimulus Payments
https://profitableinvestingtips.com/profitable-
investing-tips/how-can-a-stimulus-help-the-
economy
The pandemic has caused many businesses to
close and workers to lose their jobs both short
and long term. People who need to stay at home
to help reduce the spread of the virus often need
financial help as their life goes paycheck to
paycheck. Short term payments in terms of
cash, unemployment payments, rent relief, and
protection from foreclosure are all relief
measures and are important to help get us
through the crisis. But, these measures are
generally not designed to stimulate the
economy.
https://profitableinvestingtips.com/profitable-
investing-tips/how-can-a-stimulus-help-the-
economy
The prospect of a “K-shaped” economic recovery is real.
Internet-related work has not suffered so much as
person to person contact work. Computer programmers
can work from home but waitresses get laid off. Both
may be helped by relief measures but only control of the
virus will get the waitress back to work, buying groceries,
and paying rent. Over the long haul, other stimulus
measures will be those that create jobs and opportunity.
Think infrastructure improvement. This encompasses
roads, bridges, ports, mass transit, and airports. It also
includes things like moving to a nation-wide 5G network.

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How Can a Stimulus Help the Economy?