Tuesday, April 20, 2021

 


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stimulus results special report


the university of california at davis says the first stimulus stimulated the economy through people who had less than $500 in their bank accounts:



'Dr. Baker and fellow researchers looked at how recipients spent their stimulus checks. The surprising find was the spending behavior was very different depending on how much cash people had in the bank. The people who had $3,000 or more in their checking accounts had no response to the appearance of their stimulus check. So the stimulus checks to those with cash in the bank did nothing to stimulate the economy. On the other hand, those who maintained accounts with $500 or less spent almost half of the deposits—44.5 cents per every dollar—within 10 days. The stimulus checks to those with little cash in the bank, resulted in 44.5% of the check amount going back into the economy in 10 days, which further stimulated the economy. '

- u c davis may 19th, 2020





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