What if the government gave every american 1600 dollars?

Your question points out a fundamental aspect of money.

If the government (through the US Federal Reserve) produces more money, that is called "inflation" of the money supply - or simply "inflation". This is true regardless of the official proclamation of an "official" inflation rate. When the government causes money to be created (through the issuance of Treasury bonds to fund the government's annual deficit) it is inflating and causing your money to devalue. That is why things that are customarily denominated in US currency - like oil, local foodstuffs, precious metals - increase in price. There value remains constant while the dollar devalues, hence requiring more dollars to be equivalent.

So, when the government gave banks money to improve their "liquidity" or "lending" (note the vagueness as to why this was done), they transferred some of the value of your money to private individuals... and to the government. No one thinks that is fair or right. However, it is done under the cover of general ignorance about what money is, and smooth public relations spokesmen.

Thus, if the government were to do this again via a $1600 per capita money-printing giveaway, that would just result in inflation of the currency, and a corresponding devaluation of your money. Everything would just cost more money. Also, more people would lose faith in the US dollar, thus causing unease and anticipation of inflation - pushing up prices further.

Both government borrowing (causing money to be created... that is, inflation and devaluation), and government transfer of new money to private individuals continues to wreck the economy. The economy cannot sustain this level of intervention.

Whenever the government borrows money or gives "bailouts" or "subsidizes" industry, it is engaged in the transfer of wealth to itself and its friends... from you - without your consent.

The majority of American people would spend a 'free' $1600.00 on junk with nothing to show for it but a few shiny trinkets. Our economy would remain as it is now. Americans can't manage money, but

they know how to waste it on consumer items that will cause no improvement in the economy or standard of living. Free money means that it's free to do be wreckless with. If work wasn't done to earn it, spending it requires no responsibility.

The government can't give money to anyone without first taking it from someone. That would be like making a giant circle and having everyone pass $1600 clockwise.

First of all they didn't give the banks anything, it was a loan. A loan which has been paid back with interest.

Second of all it was not to create jobs it was to stabilize the financial institutions and prevent their collapse.

So other than having all the facts wrong ....good post.

I suspect there would be a minimal bump in the economy and then a quick return to how it is/was, basically accomplishing added debt that needs to be paid off.

We do not need short time fixes, the country needs long term fixes.

Where did the government get the $1,600? Did it just print it out of thin air? Did it collect it in taxes?

If it printed it, then that adds to the debt and is a bad idea.

If they collected it in taxes, then what's the point? If you take $1,600 in taxes from me and then give it back, what have you accomplished? If you take $1,600 in taxes from a "rich" man and give it to me, then you are just a common thief.

This a bad idea all around.

Here's an alternative question - What if the government took $200,000 from every American? Well, because the government can not spend only what it "earns" it has spent $200,000 more for every working, tax-paying citizen than it has taken in.

They did once. Most people used it to pay off debts which is why I didn't do any thing for economy. I doubt it wold do anything for the economy because like before people would use it to pay off debts.

If everybody is handed 1600 dollars it doesn't make anyone more wealthy.... God u people are idiots.

The governments money comes from taxing it's citizens.