Andrew Yang, a former presidential contender believes that the stimulus check was not the reason for the high inflation and says that it is still ok to send more stimulus payments to people. He said that it is the best way to shield the American middle class and the poor against the economic shocks that they are facing and also the technology disruption.
The intense evangelist of the concept of universal basic income was speaking at the Bitcoin conference in Miami. He said that stimulus payments constituted a mere 17 percent of the total money spent under the CARES Act. He commended the measures and said that the federal government plowed trillions back into the economy and helped prop it up.
He said that the remaining 83% went into institutions. Yang ran for the mayor of New York and also for the presidential election on a stage that advocated a monthly payment from the administration to citizens between the age of 16 and 64, without any limitations, conditions, reservations, or qualifications.
Yang Says That The Stimulus Checks Were A Just 17% Of The American Rescue Plan Act And Did Not Fuel Inflation By Itself
Yang said that the stimulus check sent to citizens constituted a minor factor and the money has been spent over a year back. But the rate of inflation remains astronomically high.
He said that before the COVID-19 pandemic and the stimulus check, the main reasons driving inflation were health care, education, and housing, and these there were not dependent on the stimulus checks issued by the federal government.
The rate of inflation rose to 8.5% last month and Yang blames that in part on the shortage of goods, leading to pent-up demands.
He said that everyone continues to remain concerned over inflations as it has made life miserable with the income not keeping pace with the increase in prices across the board.
Yang said that Web3 has the potential to become one of the frontrunners in the fight against poverty.