What is economic stimulus, and how does it help during a crisis?
Answer (1)
An economic stimulus is a set of government actions—like increased public spending, cash aid, or tax cuts—meant to boost the economy during a downturn. When businesses are closing and people are losing jobs, a stimulus injects money into the system to support demand and create jobs. For example, in the Philippines, the Bayanihan Acts provided cash aid to poor families and loans to small businesses during the COVID-19 pandemic. These efforts helped keep people fed and businesses afloat. Without a stimulus, an economy in crisis can fall deeper into recession because spending and investment stop.
