In the long run will the $1,400 stimulus help or harm the U.S. economy? (March 2021) (loans, small business)
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Transfer payments have differing effects. A little of this is put in at the bottom of the food chain: $1400 to individuals. But much of it is going toward the top of the chain where it will be used to purchase supplies, equipment and labor. That "should" help to stimulate the economy.
And then there is the increased debt level. It didn't seem to matter when there were billions in tax breaks for the already very wealthy. And it wasn't an issue during the first two trillion dollar programs. Could this plan be the straw that broke the camels back? It might be, particularly if this latest program has a simulative effect on the US Economy and increases the demand for money. Already interest rates have doubled, albeit from a very low level, in the past few months.
Frankly the American economy has been screwed for couple decades now. A few got really rich. Most stagnated. Most consumer goods are not manufactured here nor are the components of those that are. Spending huge amounts money either by those getting the money or those landlords etc that they give the money to, will benefit China and Mexico more than America.
Compare this to money borrowed and spent on WWII. Fewer American lives lost and it put Americans back to real and good paying jobs. It improved the infrastructure of the country.
I personally rather saw the money put into American infrastructure including affordable housing. Things that would actually improve the economy and create REAL JOBS, instead of propping up the debt skimmer middlemen.
Why do both Democrats and Republicans always talk about improving infrastructure but never do diddly, just vote their bases a bigger slice of money from debt with nothing to show for it long term? This is how to shink and destroy an empire.
Why do both Democrats and Republicans always talk about improving infrastructure but never do diddly, just vote their bases a bigger slice of money from debt with nothing to show for it long term? This is how to shrink and destroy an empire.
I can't disagree with anything you wrote (except that there are no "democrats" and "republicans", there are just different color sock puppets in political theater), but I will answer the question that the puppet masters, and their counterparts in other countries, are attempting to exchange a continent-wide empire(s) for global ones.
There is still some trickle down, even if a bit poisonous.
I can't disagree with anything you wrote (except that there are no "democrats" and "republicans", there are just different color sock puppets in political theater), but I will answer the question that the puppet masters, and their counterparts in other countries, are attempting to exchange a continent-wide empire(s) for global ones.
There is still some trickle down, even if a bit poisonous.
We all have to suck it up and adapt.
Good Luck!
Absolutely. I agree with and I'm repping anyone in this thread who says "harm." Ever hear of the Roman Empire? This will not end well.
Stimulus checks aren't really for stimulus. It's for people to be able to pay their rent but starve basically. 600 + 1400 isn't going to do much for people who live paycheck to paycheck which is most of us. I think it will take decades to get back on our feet and pay off a gargantuan deficit. There will be a world power transfer. USD will not longer be the basis for commerce. Perhaps return to British Sterling. Russia and China jockeying for the lead. Could be WW3. It might be up to the Commonwealth of Nations to step in.
I'd pay more attention to what the corporations are getting so they can continue to pay their executives millions a year. I am against that. If a big business cannot survive a few months of low revenue then they are poorly managed and don't deserve tax payers money to bail them out. A corp shouldn't get any tax dollars until they cut management million dollar wages by 60% first.
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For the 6.3% of Americans that are unemployed currently, and those whose hours have been cut, that money will be a big help, but their spending won't be enough to actually help the overall economy. For the rest of us still working and in fact saving by not eating out or having to commute, the stimulus money is going to just sit in the bank, and that is no help to the economy either. Some of us are paying off credit cards, and if anything, that hurts the economy as the credit providers lose all that interest money. When we do spend money these days it's at Amazon, and 99/100 items bought are helping the Chinese economy more than ours. The seller may be here and get some profit, but they bought it from the Chinese manufacturers.
In the short run, it will help SOME. Many don't need it, I don't need it. For me, the realization is that I will have to pay it back some time in the future via less SS, more taxes, or my children will pay it, destroys any perceived benifit now. It just goes into the bank....now, the US can carry debt, stable economies can carry much more debt than originally thought. But we are starting to get into shaky ground as we don't have any cushion for a future crises, or interest rates can go up, and the cost of debt will sink us. How much debt can we take? No one knows, but it increases risk. Imagine the US defaulting on a payment, our entire economy is based on the strength and security of the dollar where investors know it's the safest investment in the world. It will literally destroy us. So in the long run it will likely hurt us, our children are looking at a shaky future.
The real danger is not this $1,400 payment, that comes to $422 billion. But this "covid" relief package is $1.9 TRILLION! much of it having nothing to do with covid. When you have a bill in the trillions, you can sneak in, not millions, but billions of dollars of waste. It also sends a bad precedent where the solution of the problem is not to address the root cause, but just to throw money at it. Will this be the last "releif" bill? Will a trillion or 2 package be an annual occurrence?
The United States was finished as a great economic power in 1971 when Nixon untied the dollar from gold. That, combined with indigestion from an expensive failed war in Asia and a failed war on poverty that we are still paying for today... and returning to with these outrageous spending bills... the bubble is going to burst, and hard.
I don't know why all of a sudden an additional $2 tril deficit is not a big deal anymore.
The priority of the deficit seems to rise only when it is a campaign issue against the incumbent or majority party. It was talked about quite a bit in the Obama era as a political issue, but during Trump's term, despite his campaign promise to the contrary, the deficit increased by as much as 10 trillion dollars - a notably faster rate than during Obama's terms, and yet it mostly disappeared as a political issue of note during his term.
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