Sans Authoritas said:
The government just prints more money whenever it wants.
It's a little more complex than that. First, you have to get the populace to actually believe the money is worth something. During the 1950's and the 1960's most foreigners would happily accept American money from tourists on vacation, simply because it came from the USA.
To this day, most Americans believe their money is "backed up" by gold in Fort Knox.
This is one those sayings like demeaning liberals as being "tax and spend." Heck the only money (wealth) the government has is from taxing and then spending. In my lifetime the best President we had was Reagan--and he had to tax us before he could do anything for the programs we enjoy.
In truth, you can spend the rebate, save it, give it away or burn it.
The big lie has always been the perceived "multiplier effect." Meaning, if I have money I buy from the grocer, and the grocer buys from the shoemaker, and the shoemaker buys from the hooker..."
Good night! If that worked as believed in theory we would have the worst case of
runaway inflation in history. Imagine an endless cycle of each tradesman consuming every dollar by
simply multiplying profit to stay in business.
The theory either assumes investment capital falls like manna, or it's a separate factor in daily economy or "the government" is the ultimate font of investment.
The entire concept of the "multiplier effect" assumes the goverment is the prime orchestrator of the whole shebang. It's a leftist view of economy. Yikes, the government directs and controls more than 90% of each dollar spent and taxed
now, meaning less that 10% (a dime) is expected to turn a recession around?
Wealth is always created the same old way. We invest existing capital to create new revenue streams--period. If you "loan out capital" you create a treadmill where the return--plus interest--has to ultimately be substancially less than any advancement.
FDR's CCC did not save us from The Great Depression, the war did. Up until that time we had no use for warplanes that could circle large sections of the globe or munitions by the ton. There were so many people creating things, and women working for the first time in manufacturing that our understanding of "wealth" skyrocketed. Did you hear the term "gouging" during the depression? Of course not. You cannot "gouge" a zero figure of real wealth.
If I get a rebate, I'll probably spend mine on premium gas or give the sum to my wife. In reality, it's not enough to create anything, nor will it change my continued buying habits--key ingredients in turning a recession.