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Bruce G's avatar

Yes, beneficiaries will have a small amount of extra money to spend each month. The sum total of this is negligible compared to the overall economy. Hardly a big inflation booster.

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JB's avatar

Agree and many have paused payments for some time freeing up money for the past year+. I think it will not really increase spending much. The spending increase already happened.

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Lewis Grotelueschen's avatar

I've seen estimates of $300 billion. If this is in the ballpark, it is not negligible. Possible that these estimates are wildly inaccurate.

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HoyaGoon's avatar

Over how long a period? $300B is a drop in the bucket of the overall economy. And, as has been pointed out, it's not as though people are getting mailed checks, they are merely seeing the balance they owe drop by $10K or $20K. No one suddenly has a lot more money to spend right away. Any inflationary effects that this will have will be so widely dispersed in both time and amount as to have no appreciable effect.

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Liberal Cynic's avatar

If I understand the program correctly it's basically the government forgiving it's own loans. No new money is being sent to individuals.

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