Topic: Another stimulus package is coming, where should congress be spending this money (Read 357 times)

Yes, I liked the expression, "It's a snowball effect and it's going to become much worse" Yes, indeed, that was what I meant. All the stimulus packages the government is now paying will be taken back later after the epidemic goes in the form of various taxes. Yes, the treasury will become empty and the government will impose more taxes. To fill it up again. This will overburden people. Some people are happy with these packages but do not know what awaits them in the future.

And where is debt going to lead us? To more taxes!
I see many people nowadays cheering stimulus packages or *vouchers*, some even hope this pandemic lasts forever so they can earn free money for the eternity, but in fact each new month the government is giving people money, the more these same people will have to pay back later to the government.
It's a snowball effect and it's going to become much worse, probably not now as we are in a poll year and everything must look perfect, but let's see in a year or two...

How about nationalising a zombie bank, and keeping it under government control. The gov could then issue prepaid debit cards to the people, and place restrictions on their use.

They should also stop funding vaccine research that will never produce a safe and effective product, and stop supporting the bankers and the stock exchange. Raising interest rates by a percent would also help.

Sure, it is better and necessary for the stimulus package to go to the people most in need, but who determines who are the people most in need? Can't this be tampered with? Then what? How long will the government continue to provide the stimulus package? Is it able to bear all this in the long run? Wouldn't this make the state treasury impotent?
In my opinion, there should be a solution to this problem, otherwise this will lead to a bigger problem in the near future if the epidemic lasts for a long time. Economic stagnation and lack of work will lead to fewer state resources and more debt, which after a period will not be able to bear more.

Little update on Stimulus money.

Seems to be a good amount of gridlock the Republican members of the Senate right now. Not surprising to see at all. As there are still (surprisingly) some members of the Republican party who care (or at least act when it somewhat matters) that the deficit is an issue and that it may not be the best idea to continue pumping money into an economy that may be able to recover on it's on. Not expressing my views, just what people in the caucus were saying.

But as of right now the Republicans and Democrats are looking at a potential $1 trillion stimulus package. Though they don't think they'll be able to iron everything out before the end of the month, which means the extra $600 across the US for unemployment is going to end.

B/c of this issue, they're thinking about giving that a temporary extension until as final plan is worked out. Highly doubt that after this new stimulus package that the $600 will last that long, seems like Republicans (including Trump with his veto power) are going to bring that amount of money down to 200-400 a week in additional money, though from some I've seen a number as low as $100.

Not sure what the right move is here. As you have many states in the US with surging numbers right now. Who knows we're well be in regards to deaths in the coming weeks, as the death numbers are ticking upwards (and deaths are a lagging indicator compared to infections, so that does make sense)

When fiat crashes, it will crash fast. Nobody knows how fast. But everybody will help to bring it down onw way or another.

Bitcoin is about $9500 right now. The Bitcoin problem is that the Devs and Miners can run the miners' fee so high that it might not be worth it.

...Eh, I don't think this is going to cause inflation that is outside of the normal inflation for the US. We typically see 2-3% inflation every year. During this year we obviously saw a lot less consumption which causes less inflation. But because of all of the stimulus packages and Federal Reserve pumping money into the economy, we've now seen the same amount of 'consumption' as before.

So inflation may be a bit higher then usual, but nothing outside of the norm for a typical year. We may lean a bit closer to 3% though. That's why your money should always be working for you, every $ in cash that you have that isn't working for you is losing 2-3% per year.

But none of that fits the simple crypto narrative of - THIS IS GOOD FOR BITCOIN BECAUSE ALL FIAT IS GOING TO DIE TOMORROW.

All these stimulus packages will cause more inflation in the end and fiat will lose value but who cares in the end it will be good for crypto right.

This is plain blackmail / public opinion manipulation... How can people think it's okay for these companies to act so entitled to public funds ?
I can understand the workers situation and the stress involved by it, but this kind of shady practices should not be mainstream and be encouraged.

Update on this, American Airlines has just come out and said that they're going to have to furlough 25k employees when federal aid money stops going to them on October 1st. They're pretty much saying that if airline ticket sales don't increase, and federal money stops coming in, they're going to lay off employees.

Is it true that they're going to be laying off employees? Yes.

Is this the same exact thing that United did? Yes.

Are they putting a lot of pressure on the government to force the next stimulus package to have more money for the Airlines? Totally.

They want more money, and they know that by telling their employees that they may lose their jobs they're going to put pressure on senators / reps by calling them like crazy. Once it hits the news (like it already has) it's a wildfire in the making. Expect more companies to continue to do this.

^^^ I don't care about the rest of the world. I want my stimulus check.

its time the nonusa realises how financially discriminative the usd is for them.

for airlines
tell the airports to stop charging stupid fee's for ticket booth  leasing and plane parking fees.. while not operating.
sure pay the flight crew, and other ground staff wages.

then the flight companies wont incur any debt and can just be happily in limbo until flights are back to normal

I don't know which one would be worse in terms of public image, spending a few billions for airlines or lose several thousand jobs. Personally, I would prefer the jobs to be lost, injecting money into a lost cause is never good, we might as well just pay for social services for the ones who lost their jobs.

Talking about the Airlines and such, it was just announced that United Airlines is saying that they're going to have to furlough half of their workforce 36k employees effective Oct 1st. They're saying all of this is going to be done if ticket sales don't increase by that point.

While this all sounds crazy at first glance, I'm thinking that this is pretty much a threat to US lawmakers and the employees to rally behind MORE money for the airlines. Not too good of a look for a politician to allow for 36k employees to get fired, especially when a lot of them are within a certain district.

Congressional money is TOTALLY going to go to them though. Even if they don't need it.

I doubt that the companies themselves are going to go over. Air travel is very essential and I doubt there's going to be another upstart airline company with the amount of regulations and capital required to start an airline.

Typically the 'kick in the nuts' last a year or two, then it all goes 'back' to normal. WH has also been floating the idea of giving out a tax incentive to travel...lol.. talk about a massive incentive to the airline and hotel industry (that I doubt is going to go anywhere) -- But just hearing about something like that is insane.

Any money that is being out to these businesses shouldn't be allowed to just be squandered by bonuses to CEO's, Vice Presidents, etc -- if anything, these bonuses should be going to employees who were putting their lives on the line in the middle of a global pandemic.

I still think both of these industries are going to bounce back.

Just like the banks took the money and paid out bonuses to their CEOs, airlines will take the money and then lay off employees and/or go bankrupt anyway.

Even if we magically eradicated COVID-19 tomorrow - I don't think air travel will go back to its prior levels any time soon, if ever. Most business travel was a useless waste of time and money and hopefully this is a good enough kick in the nuts for businesses to realize that it needs to go the way of the horse and buggy.

Some other industries like restaurants might bounce back (people need to eat and are generally too lazy to cook) so I wouldn't be opposed to supporting those.

PPP still has like another 130B in it, though they did just extend the amount of time that businesses will be able to apply for it. So they have sometime to disburse that, and wouldn't be surprised if that gets depleted to another half of 130B.

Not really sure on what should be done in regards to the extra $600 -- as it seems like regular unemployment benefits from states just wouldn't be enough. Fed is most likely going to step in and pay for all of the state benefits that were used during this time, as the unemployment system isn't made for EVERYONE to be unemployed at the same time. Just some, like any sort of insurance.

Easiest thing to do is direct cash payments, I'd have to heavily agree with you. Maybe tie it to something like COL on a state basis, though that yet again is just adding more hoops. I'd say just tie it to income levels and send out more cash.

They'll keep propping up Airlines and hotels and so on and so forth, lot of jobs there that the government has deemed too big to fail -- just like the banks in 2008. Not saying I agree, though I think we all know what they're going to do.


Slowly but surely.

It feels like we are getting closer and closer to seeing a universal income.

Stimulus package i think it should  be channel to business people and also for less privilege people because directing it to one sector can not render a massive help.
Or stimulus package should be use for a particular state that lack eatable items.
For the benefit of the country.