This is why fiscal stimulus in the form of checks to every citizen is a brilliant idea. It doesn’t matter if they “need the money” it matters if they spend it and productive capacity can meet the demand.
The Fed could drop a bag with a million freshly-printed FRNs in it on my doorstep, and I'd simply take the bag and put it in my bedroom. A significant number of people aren't going to spend the money no matter how much it is.
Just due to being on HN, you're statistically likely to be someone who has plenty of savings already.
Most of America does not.
If people are getting laid off en-masse, the majority of those people will, within a few weeks, not have enough money to afford basic necessities. Giving each of them $1k/month would soften the blow considerably.
Giving them $3k/month would, for most of them, get them back close to where they were before the layoff, and keep the economy functioning.
Hmm. I am not sure one can have it both ways. Either most people will save a government handout, or most people live paycheck to paycheck and will be severely affected by losing their job/an economic slowdown.
Of course there will be some people who will immediately save any check from the government, but that's a disjoint set from the people who are in dire need (laid off or reduced hours).
Granted, it's still possible to cash those out and save the money, but there's a little more friction involved.