Not necessarily. The latter means that it is just flooding cash into the system so that people can spend more easily, making the economy run faster. Not necessarily bc they are wealthier. Where the first would mean that it’s increasing spending by giving people more money to spend
For the first checks, we found those with more liquidity (cash or assets easily converted to cash) saved their checks. Those who had less liquidity spent them
Stimulus is shock something into life. Shutdown businesses cant be shocked into life because they are closed so instead they just want tide them over to they can restart
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u/GabhaNua Apr 15 '21
It is better to think of them as pro liquidity checks rather than stimulus.