[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

Two reasons off the top of my head: inflation is more complicated than that, deficit spending is only one contributor and is apparently less of a factor than many believed. Second, in the overall budget of the US, 1.9 trillion dollars… isn’t that big a deal.