Quote:
Originally Posted by _LB_
Surprised the US tv or media hasn't explained if for you guys.
To simplify it they are hoping that giving out 600 to you all will mean a large part of it is spent, thus increasing consumer spending and as a result basically kickstarting the economy again to avoid a recession. A certian number of consecutive periods of non growth will result in a recession and thats the last thing the world or the us economy can afford.
They are not giving you the money because they think you need more money, they are giving it to you in the desperate hope you will spend it.
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The official definition of a recession is: "2 consecutive quarters with a negative growth".
And this "let's give money to people hoping they'll spend it and kickstart the economy" technique is used often here (last time was in summer 2007 actually), but all it does is to increase the public deficit even more... Not sure the result will be different in the USA...