Do they have the money to do that? I thought during covid all the news outlets were saying the govt was running out of places to pull money from, and taxes didn't generate as much revenue this year.
But really. The Federal Reserve can print as much money as it wants. There just happens to be economic consequences for doing so. Printing so much money will cause more inflation but if its preventing an economic collapse its worth it. The inflation might even be negated based on the crisis at hand and who is given the fresh money.
One way of looking at it is to view all federal spending as coming fresh off the printer and all taxes as going directly into an incinerator. You just have to be careful about how much money you are putting in or taking out of the system.
Do they have the money to do that? I thought during covid all the news outlets were saying the govt was running out of places to pull money from, and taxes didn't generate as much revenue this year.
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:brrrrrrrrrrrr:
But really. The Federal Reserve can print as much money as it wants. There just happens to be economic consequences for doing so. Printing so much money will cause more inflation but if its preventing an economic collapse its worth it. The inflation might even be negated based on the crisis at hand and who is given the fresh money.
One way of looking at it is to view all federal spending as coming fresh off the printer and all taxes as going directly into an incinerator. You just have to be careful about how much money you are putting in or taking out of the system.