03/25/2020
Stimulus: Part of the convoluted theory of a stimulus check.
If you paid everyone $1000, then you introduce 330 million checks, or $330 billion into the economy......then two theories take effect.
1) Multiplier theory of the 4 fold expenditure of the money. Everyone spends, it then that person spends, etc. This is considered stimulus. $330 billion multiplied by 4 is over $1.3 trillion in added value to the economy, thus a veiled recovery........... This is only partially true and people get lost in this at times.
2) General economics teaches us Supply vs Demand issues. More "supply" of money reduces its "demand", therefore prices become inflated (inflation) which erodes the "stimulus" in point one above.
The strategy is a "patch" on a leaking boat/levy/condom, etc.
Here is a strategy/theory. Make a list of things you REALLY need or will need over the next 6 months. Make a list of items considered "seed" making the stimulus and "investment". Spend your stimulus AS FAST AS POSSIBLE on the seed items....... because the longer you hold it the more inflation erodes it.......the longer you hold it the more prices increase to consume it.
The longer you hold it the less advantage you have......... You see "money" is only worth something when no one has it. When everyone has the same, then it loses value...... That is why increasing minimum wage does NOT work. That is why socialist/communist systems do NOT work...... The government cannot balance the scale to help people. What the people must do is become creative, become productive. Explore, expand, and bless their fellow man.
Pass this on to the others, or allow them to be caught with worthless fiat cash, no goods, no supplies, and no understanding.
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