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
The US government sells debt in the form of Treasury Bonds to raise money. People buy those bonds because they are a super-safe investment. At the moment the interest rate on bonds is crazy low, and demand is very high, so the government is actually profiting quite a bit from it’s “debt”
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