LogFAQs > #942311817

Solid Snake07 posted...

We most definitely are "creating money"

The federal reserve is printing roughly about $0.50 for every dollar being spent on these relief acts. Monetary and fiscal policy are acting in unison in the face of an unprecedented modern economic crisis.

You're confusing monetary and fiscal policy again. The fed can't actually print money but it does control the supply of money. That has nothing to do with fiscal policy however, the money congress spends comes from tax revenue or borrowing. The fed does NOT print money to fund fiscal policy like people think. If that were the case we would be seeing the inflation levels you're claiming.

Solid Snake07 posted...

The fiscal policy we're seeing is just floating everthing in the hopes that everything will continue as normal when this passes. But it's artificially floating it and there's no gurantee that returning to normal will even happen, much less in the near future.

The point of a fiscal stimulus is to stop demand from continuously falling which eventually leads to a deflationary spiral. It's why financial panics used to lead to decade long depressions. And the government response to the pandemic, the 08 financial crisis, etc is why we don't have depressions these days. It's good policy.