Multiplier effect

One of the candidates running for president is Andrew Yang and he wants to give $1,000 per month to each citizen between the ages of 18 and 64 and he says it will spur economic growth. Recall that Nancy Pelosi said that increasing unemployment benefits would do the same thing so this is not a new idea. Economist have something called the multiplier effect and it states that if a person has $100 of extra disposable income they spend $90 it will result in $900 in total spending. This hand out will cost the government $2 trillion dollars but will result in $20 trillion in spending which will double the GDP overnight. If the government collects ten percent in taxes it will recoup it's investment. Yang also says his plan will eliminate all federal, state and local welfare which will save another $1.2 trillion.