Can government stimulus programs boost consumer spending?
The world has been experiencing an unprecedented economic downturn due to the COVID-19 pandemic. A significant number of economic activities have shut down, causing contractions in global output, as well as the loss of businesses and family income. Recent evidence shows that millions of people globally lost their jobs and projecting the extent of the impending global economic loss remains a difficult endeavor. In response, almost all countries have been declaring various economic stimulus packages to overcome this situation. With increasing unemployment, economists are devising and proposing economic measures that could help ensure a sustainable increase in consumer spending and circumvent a long-term economic recession. However, whether the proposed economic measures are going to provide a long-term solution to these problems remains a concern.