President Joe Biden’s Covid relief plan is making its way through Congress.
The $ 1.9 trillion bill includes money for a host of programs, including improved unemployment benefits, vaccination efforts, and $ 1,400 incentive checks.
Direct payments alone are expected to cost more than $ 400 billion.
According to Sahil Bloom, a financial educator and vice president at Altamont Capital Partners, financing new emergency relief spending is an interesting way to borrow money and print it figuratively.
Bloom said the government can create money without actually printing physical currency. “We live in a digital age. So money is just numbers on a screen,” he said.
Three main players are involved in the venture: Congress, the Treasury Department and the Federal Reserve. Watch this video to see who is actually “clicking the button” and how the process can backfire.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns