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Originally Posted by bizaro86
Actually lower income people are vastly more likely to spend 100% of new money they receive than higher income people (who might top up RRSPs or similar savings). That isn't a value judgement, poor people have more unmet needs/wants so they're more likely to spend extra money.
So the government borrowing additional money and giving it to low income people is a very efficient way to convert capital to current spending, which is definitely inflationary. That doesn't make it the wrong thing to do necessarily, because poor people are more harmed by inflation than anyone else.
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I agree they are going to spend it. But it also replaces debt and other things they were likely to take on anyways in a time of inflation.