"Stimulus" and government spending over GDP increase simply INFLATES the money supply rendering your dollar less value than it was before. In time that lower value dollar will be reflected in higher prices. THAT is the hidden tax of inflation caused ONLY by increase in government spending.
Trump's "stimulus" ratifies the JM Keynes and Leftist approach that more government fixes things. But more unconstitutional government wrecks things. Trump needs to understand that the TRUE economic "stimulus" is TAX CUTS, or in this case TAX REBATES (RETURN SOME OF THE TAXES PAID) - ie. shrink government income and spending.
There is only ONE cause for inflation: running the government printing presses to facilitate more government spending beyond our GDP. The graphs below show how increase in inflation follows increases government spending, taking off big time since the 1970's.
Trump knows a lot about successful business - one of the best. But he still has a lot to learn about economics and the value of SMALL CONSTITUTIONAL GOVERNMENT. Short term illusory "help" from "stimulus" does not offset the long-term damage done by such. Again, what he should be doing, is TAX REBATES - that is not more government spending but shrinking government income which under the right thinking will shrink government spending.
FYI, the second graph is the increase in government spending. Inflation and government spending go together like “peas and carrots”.
He has already done what he can with taxes. The point of this “stimulus” is pure short-term, to take the ball out of Nancy, Chuck and Joe’s court so that they do not have an issue to campaign on. Long-term, it’s inflationary. 100%. But long-term, allowing Joe to become No. 46 will be even more inflationary, and that’s the very least damage that he would do. Trump took micro and macro-economics at Wharton, I’m sure, and he knows all about government spending and its effect on inflationary trends. But as a politician, he has to pass a stimulus bill on his terms, and that’s the best that can be done. 1.5 Trillion, say, instead of 3 or a compromise of 2.2 Trillion, because otherwise Biden will get to pose as compassionate and use that to slither his way into the oval office. This became inevitable as soon as the lock-down became policy. You play the cards you’re dealt. He’s playing them well. But it’s a lousy hand.