1.9 trillion capital flows into the US market. What impact will it have?

On February 27th, the US House of Representatives voted to pass a new round of economic aid program of $65,438+$0.9 trillion. This round of economic aid plan was proposed by US President Biden. This economic aid program is mainly to provide financial support to American families and enterprises affected by the epidemic to increase the growth vitality of the American economy.

This round of economic aid plan includes a subsidy of $65,438+$0.400 (about 9,000 RMB) directly to eligible Americans and an unemployment benefit of $400 per week to eligible unemployed people, which is a very huge expenditure. According to the use agreement of the plan, one of the important purposes is to fight the COVID-19 epidemic, and it will provide 20 billion US dollars for vaccination in COVID-19, 50 billion US dollars for testing in COVID-19 and 350 billion US dollars for local governments.

The most essential understanding of this round of economic stimulus plan in the United States is that the United States will start printing more dollars and inject more liquidity into the market to promote the development of the national economy. If we can't keep up with the problems in economic development, it will not last long to boost the American economy by injecting funds, and eventually the American economy will go into recession. When there are more and more funds in the market, it can boost the economy in a short time, but it will bring more problems to the society. With the increase of liquidity, the prices in the market will rise, and the emergence of inflation is inevitable, which will once again trigger new economic problems, affecting not only the economic development of the United States, but also the global economic development.

At present, the global economy is tied together, and no country can be immune to it. This economic rescue plan of the United States seems to be just a policy of the United States, but once these funds flow into the market, it will have a greater impact on the global economic development.

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