Forum Thread

how does the government print the money for the stimulus checks?


Reply to ThreadDisplaying 4 Posts
  • Are you sure you want to delete this post?
        
    This is seriously a question. I have no clue how this works and I definitely do not claim expertise at all on the subject. But I saw a clip on a news story of the IRS printing off the physical checks. Ok, so the government has to basically "print" money in order to distribute money that didn't exist in the first place. My question is, how is that done? Is money actually printed, or does the government just create it digitally and distributes it that way. It may be a silly question, but since we no longer use the gold standard, I wonder how they are able to create a balance without tanking our currency value. Anyone know how this is done?
  • Are you sure you want to delete this post?
        

    There are many levels to explaining it but the simple way is yes, they do basically add money to the supply out of thin air when they do these stimulus packages, by both psychically printing money and adding to the tallies of total digital money, which in turn raises our national debt, which is borrowed from many places, like other countries for example.

    This dilutes the supply of US dollar in circulation, which definitely will cause some amount of inflation in the market because the more dollars out there, the less scarce and the more goods and services will cost. Simple supply and demand. But economists argue there are ways to 'ease' inflation with subsidies and other financial trickery.

    Some of it will work, at least temporarily. But there is no way around it, if you print trillions of new US dollars and add that to the current supply it will make the dollar weaker. Luckily its the world's currency standard and should remain so for a long time, so it's not insane to do. Basically we were forced to forego responsible economics because of a global economic catastrophe. Triage logic.

  • Are you sure you want to delete this post?
        
    It's interesting to see how many plates the gov has to spin in order to get economic relief out to Americans in need. Thanks for the legit breakdown!
  • Are you sure you want to delete this post?
        
    Once we got off the gold standard and introduced quantitative easing it was all down hill from there. Encourage everyone to read up on quantitative easing, will definitely make you think twice about how our economy is run in the background.