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I (sincerely) wonder - what would happen if USA were to receive such a short-duration windfall? Will it be socked away in a rainy day fund, or will it be spent immediately in terms of infrastructure programs, or welfare programs or tax cuts/rebates?

In fact, California experienced such a windfall due to rising stock prices in recent years, and Jerry Brown had to fight with the legislature to save that in a rainy day fund instead of spending on welfare programs.




See e.g.:

https://en.m.wikipedia.org/wiki/Alaska_Permanent_Fund

The fund pays a yearly dividend to permanent residents.

The article also mentions that one of the reasons for setting up the fund was dismay with how the initial $900 mill. of oil income was spent.


Now research the current state of the fund, there is a bit of controversy going on right now. The governor has unilaterally limited the payout this year and a lot of folks aren't happy.




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