Monmouth University Stimulus Package Negative Aspects Presentation

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we5069

Economics

Monmouth University

Description

I am doing a presentation on the stimulus package, the positive and negatives. I need help focusing on the negative parts and highlighting the main point with a lot of detail. I would need help with about 8 main negative aspect of the stimulus package. 5 slides highlighting main negative aspects of stimulus.

I am providing what I have so far to avoid repeat information.

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Stimulus Package What is a Stimulus Package A stimulus package is introduced as an economic measure that the government takes to stimulate a struggling economy. The main Objective of the stimulus package is to reinvigorate the economy and prevent or reverse a recession by increasing spending and employment. A stimulus package will lower taxes and interest rates to help stimulate the economy. How Stimulus checks are used There are several factors that determine how a stimulus check is spent. A person that is out of work for a longer period of time will be likely to spend less of their check, but if they feel there unemployment is temporary they will be more entitled to spend more. People of higher income or working will typically save the check. The previous rounds of checks came when there was lockdowns and health safety measures in placed caused a delay in spending. Unemployed and poorer demographic would spend their entire checks or use them to repay debts purely out of necessity. According to a report by CNBC, those whose incomes were not drastically affected by the pandemic but still received the stimulus chose to invest there check into the market. Economic Stimulus and inflation Government Stimulus affects the Stock Market The U.S. stock market is continuing to recover from the effects that covid-19 placed since the bottoming in March of 2020. To help with the recovery of the economy the government announced a $2 trillion stimulus package that was put in place to help personal income. Industry Bailouts An industry Bailout has become one of the most common types of fiscal stimulus. https://www.google.com/amp/s/www.forbes.com/advisor/personal-finance/stimulus-packages-throw-money-at-financial-crises-but-do-theyactually-help-the-economy/%3famp Micro Level Positive Effects ● Gives a lifeline of financial support to those who are unemployed. ● Increases the positive political view of President Biden. ● Gives families a sense of comfort during these uncertain times. ● Increased consumer buying power. Macro Level Negative Effects ● Hundreds of billions of dollars which will need to be repaid in the future. ● Increased the level of saving rather than investing/spending. ● Spending barriers such as movie theaters, airplanes, restaurants hotels, etc. ● Strong probability of increased inflation rates. Current Stimulus Restrictions ● ● ● ● Rather than the last bill, families who have an AGI higher than $100,000 are excluded from the most recent stimulus bill. Budget Reconciliation speed up the approval processes but ultimately dismissed the approval of an increased minimum wage. Public Schooling aid has been decreased as a result of Budget Reconciliation. The 3rd Stimulus check is based on your 2020 and possibly even your 2019 tax filing.
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Stimulus Package Negative Aspects
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Variation of state’s situations
Broke federal government especially in Social Security and Medicare
High spending leading into deficit
Well-funded state and local infrastructure
A Keynesian stimulus ability to ignore the long run.
Rising federal liability is fiscal child exploitation.
Opportunity for reconstructing calamities in state’s budget
A bailout delaying state reforms








Bureaucratic and ineffective programs resulting into deficit
Federal consideration on state activities should be terminated
Indication of red alerts in sectors such as infrastructure and Medicare.
Budget allocatio...


Anonymous
Awesome! Perfect study aid.

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