[Eli5] how come the inflation level isn’t going up in the US, if the government literally gave everyone like 1000 dollars 3 times?

Question

From what I know, the government can make cash out of thin air, but this causes inflation levels to rise. Or is everything they’re giving out just their surplus?

In: Economics

Answer 1

A lot of posters here are ignoring your biggest error. The money was not printed out of thin air. It already existed and belonged to the government, ie, already belonged to the taxpayers. New money did not enter the system at all, so your supposition about inflation is inherently false.

Additionally, other countries are giving out way more money. Canada, for example. We have received a total of $3200 over the past year, and not everyone even received that much. It’s pocket change.