I’ve had the same question. We saw this, to some degree with the stimulus checks during the pandemic. Initially people got all this money and reports were that savings rates had never been higher… but most of the world was also shut down. As things opened up, or people simply got bored at home, what did we see? People spent everything they were given, and more. Personal debt is now at an all time high, and we’ve seen a bunch of inflation (for various reasons). Most people are in a worse place now.

Financial literacy is extremely important. Giving more money to people who don’t know how to handle money, allows them to dig bigger holes.

That said, everyone’s investments and 401ks are reliant on this reckless spending to keep returns high.