I understand that it is better for individuals to have money to spend in the market, but I don’t understand how the government get the stimulus money. If people are making less and paying less in taxes (plus tax cuts), isn’t the government low on cash too?
Bonus: how insulated are government jobs during economic turns?
In: Economics
For a government that controls their currency, money is a tool, it has no actual value to them the way we value a $1 bill.
They use this tool to maintain the appearance of value in a tight range in order to prevent the appearance of value from going too far in one direction. Because when that happens, society begins to breakdown.
So essentially what we see as money is a tool used by the government to keep their society orderly by making everyone think their net worth is really worth what they think it’s worth.
The government prints it out of thin air the same way when we pay taxes, it goes back into nothing. The reason the government keeps track of their budget and gives us the appearance that they’re trying to keep it balanced is because they need a way to measure how much is flowing in and out of the system. If too much is flowing in one direction, then they know how to counter it.
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