Can Cash Subsidies Improve the Lives of Residents in an Epidemic?

Abstract

People say that there is no free dinner in this world. However, this is not necessarily true in United States, maybe only in United states. Because when you get 1200 dollars subsidy for only being alive, you actually do get free dinner. During the covid-19 pandemic, the federal reserve adopted a series of actions to stimulate the economy. Among those policies, the most famous one is The CARES Act, a form of direct cash subsidy. Although it sounds a little ridiculous that government directly give people money, the policy did contribute a lot to the recovery of the whole US economy. However, it may appear that direct cash subsidies contribute to the recovery of US economy without a cost in the short run, cash subsidies are the cause of debt and other issues. This paper quotes data that were published by the US departments, striving to reveal the effects of US policies during pandemic, therefore offer valuable experience and guidance for policy-making in the future.