The US government has sent checks to millions of Americans during the economic crisis caused by the pandemic, but some economists are concerned that all that government spending could lead to inflation. If everyone suddenly has $1,400 more to spend, what will that do to the economy? Will it lead to prices going up and money losing its value?
The consensus among most economists, including those in charge of steering the US economy, is that we actually want some inflation. Even seeing 4.2 percent inflation in April of 2021 isn’t scaring them. And to understand why, it helps to think of the US economy as a fish tank.
Watch the video above to learn more about how stimulus checks help the economy and why US economists actually want inflation. And read more from Vox’s Emily Stewart on what we should and shouldn’t worry about when it comes to inflation.
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