The stimulus bill has just passed. Democrats in favor, Republicans against.
Good news except there are always unexpected consequences. It is adding to deficit spending, but these days, it seems like deficits are covered from creating new money. Interest rates have remained low for years. Big deficits are nothing new, they just tend to get even bigger as the years go by.
One potential problem is inflation. When money is tossed into an equation, it can lead to inflation. Often inflation benefits those with assets that go up in price; such as homes and stocks. Others; such as renters and folks who don't own assets can get left behind.
This stimulus bill attempts to address the needs of the folks who have been left behind in the past. It's a bit of a gamble. We'll see what happens.
If pockets of inflation pick up and people continue to be left behind, hopefully politicians, and the public, can understand what is happening and try to address those problems as they are attempting to do now.
Inflation, as a whole, tends to look, at least, like it remains low in spite of so many years of deficit spending and new money creation.
Problem is that there are certain pockets of inflation, such as (these days) housing, healthcare and education. These important pockets make life hard for a lot of workers.
Hopefully this problem can be understood and addressed.
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