The Government’s role in responding to this economic crisis:

With the government giving out stimulus checks to the bottom half and implementing unemployment benefits, the Fed has put up 4-6 trillion dollars off it’s balance sheet and congress has put up another 4 trillion dollars. This is an immense amount of money, so let’s dive into the impact the debt will have on the economy in terms of value of the dollar, inflation, and billing. If you think of the country as a business, the U.S has a lot of intrinsic and asset value, the country owns 35% of your income which means the country owns a thirty five percent stake in your intrinsic value as a contributor to the economy and they retain the right to change that percentage ownership through their tax policies. This shows that the U.S economy has enormous assets whether they're real estate or infrastructure, thus, it’s clear that the asset side of the U.S balance sheet is very large. The problem is, our liabilities are even higher, not only debt (which is a significant portion) plays a role, but you also have essential commodities like social security, enormous health care costs, medicare, etc… so it’s something that is very concerning to U.S citizens. Despite being in a very low interest rate enviornment, if you do the valuation of the asset and liability side of the balance sheet, you would see that we are in a “technical recession” which can definitely influence the cost of a dollar, causing inflation to occur. If the Fed doesn’t come up with a clear cut solution, it will take a while for the U.S to recover.