00:01
Hello and welcome.
00:03
So this question is actually an excellent topic for today's economy, because right now we are actually seeing the aftermath of this type of government spending.
00:12
So is it good or bad, and let's name some pros and cons about it.
00:17
So for starters, when the government supplies this money to the economy, then what's happening is that they're simulating the economy.
00:32
They're essentially preventing businesses from going bankrupt.
00:36
They're trying to help keep as many people employed in the economy running as possible.
00:40
So they are stepping up to do that, which is extremely important, especially during times like the pandemic and the great recession, because that is when we were hurting the most.
00:50
Now, that said, what it often can do is that it can make people complacent.
00:58
And, and even more importantly, inflation.
01:11
These are two cons.
01:12
Because for starters, if your people start to become complacent because they're getting government benefits sitting at home and doing nothing, which, of course, i mean, made sense during the pandemic because they couldn't work.
01:24
But that was still the case, right? they were essentially not working.
01:27
And as a result, they were still getting paid monthly checks...
