President Joe Biden’s Covid relief plan is making its way through Congress.
The $1.9 trillion bill includes money for a myriad of programs, including enhanced unemployment benefits, vaccination efforts and $1,400 stimulus checks.
The direct payments alone are expected to cost over $400 billion.
Funding new relief spending involves an interesting way of borrowing and figuratively printing money, according to Sahil Bloom, a financial educator and vice president at Altamont Capital Partners.
Bloom said the government can create money without actually printing physical currency. “We live in a digital age. So really money is just numbers on a screen,” he said.
The undertaking involves three key players: Congress, the Department of the Treasury and the Federal Reserve. Check out this video to see who actually “clicks the button” and to learn how the process can backfire.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.