Andrew Yang: Stimulus checks should not be blamed for inflation
Andrew Yang: Stimulus checks should not be blamed for inflation

Andrew Yang: Stimulus checks should not be blamed for inflation

During Covid-19 pandemicCongress has stepped in to approve three needed ones stimulus check– a $ 1,200 check in April 2020, $ 600 in December 2020 and the $ 1,400 payments that were given the green light last spring under President Joe Biden’s $ 1.9 trillion US rescue plan.

In recent months, however, there has been more talk that the state-issued direct payments should be blamed on the current ones high inflationary pressures which is felt all over the country. In fact, the latest the consumer price index (CPI) was found to have increased 8.5 percent in the year to March, hitting the fastest inflation since 1981, according to Data from the Ministry of Labor.

But this view is being pushed back by former Democratic presidential candidate and New York City mayoral candidate Andrew Yang, who has long been a strong supporter of universal basic income (UBI). During his presidential campaign, he embraced idea to give $ 1,000 to all American adults on a monthly basis.

“Money in people’s hands for a few months last year – in my mind – was a very, very small factor, as most of that money has long since been spent, and yet you see inflation continue to rise,” Yang said. CNBC on the sidelines of the recent Bitcoin Miami conference, adding that before the pandemic and stimulus payments, the main drivers behind inflation were basic necessities such as education, health and housing.

Yang also claimed that stimulus checks covered “maybe 17 percent” of all the money issued through the CARES Act. “Where did the other 83 percent of the money go?” he said. “It went to institutions. It went to pipes. “

According to Yang, the current high-inflation environment has more to do with too much accumulated demand and not enough inventory. “Everyone is worried about inflation,” he said. “I’m concerned about the fact that it’s making many Americans’ lives miserable because it’s a very difficult situation when your expenses are rising and maybe your income is not keeping pace.”

Yang also had high praise for cryptocurrenciesand notes that bitcoin is not just one inflation hedging, but it could also help realize his ambitious vision for a widespread rollout of UBI. “The intersection is very significant, because if you try to get purchasing power in people’s hands, a tool to do so is the US dollar, and I ran for president, but there is no reason why it should necessarily be in US dollars. as opposed to bitcoin or another asset class or currency, ”he explained.

“You can get municipalities and communities to experiment with local currencies that will help drive people to local small businesses and nonprofits that may not get the support they need right now,” he added.

Ethen Kim Lieser is a state-based finance and technical editor in Washington who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek and Arirang TV. Follow or contact him at LinkedIn.

Picture: Reuters

Leave a Reply

Your email address will not be published.