So, some back of the napkin math here. It’s just me thinking out loud. It’s not a discussion on fiscal policy, Right or Left economics, etc. It’s an observation on an action already taken by our government. Also, I’m going to make a prediction right now, but not post it until the end. See if you can guess what it is.
The .gov approved 1.5 trillion to put into the market to arrest it’s fall. They cut interest rates to zero via the Reserve. None of that actually helps the common citizen directly. Maybe, possibly, it might help in 6-24 months. Probably not. Not to those of us on the ground. That’s 1.5 trillion that presumably nobody on the Right even asked, “But how are we going to pay for that?!!!”
Meanwhile, I read that some representatives are considering providing money to those affected by all of this. $6000 was the figure I saw. Somewhat similar to what Bush and Obama did while trying to deal with the ’00 issues, but more targeted.
This article mentions roughly 80 million people at risk. Well, 80 million times $6000 comes up to $480 billion dollars, which means for a about 60 billion less than the amount of money being used to prop up an overvalued stock market, 80 million people could pay their bills, feed their families and purchase the goods and services needed every day for 3 months. 80 million people participating in our economy, keeping doors open, businesses no longer at risk, jobs to come back to as the virus burns itself out. 80 million people continuing to pay taxes…
Or, we can offer no interest loans and prop up a market in need of correction.
Do you know what $480 billion dollars does to an economy when it’s spent by local people at local businesses, where every dollar spent may circulate anywhere from 2 to 7 times? Let’s just say it does more than a no interest loan to a real estate developer looking to purchase some high rises.
Do you know what a recovering economy does to the stock market? I’ll give you a hint, President Trump has been taking credit for the last 10 years of it, right up until about a week and a half ago…
*My prediction – The greatest response to this will be, “So what about all those people whose jobs aren’t affected?”