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?
Lv 6
? asked in Politics & GovernmentPolitics · 4 months ago

Should only covid unemployed Americans receive stimulus checks?

If you're working why are you entitled to the check? Check sounds nice but we have national debt that is over $27 trillion. USA government expenditure needs major cuts and possibly some tax hikes, giving more handouts is financially irresponsible. 

Update:

A.J. great input but the economy is not in a downturn, stimulus are to stimulate the economy during a crash, it is Keynesian economics. We are not in an economic downturn, quite the opposite. 

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  • Anonymous
    4 months ago
    Favorite Answer

    I'll answer in 3 steps first about money for everyone equally other than high earners, then about the National Debt and 2017 tax cut, and then about Covid. You can stop reading if you only want a head nod dichotomy yes/no agreement. This will be a long teaching answer for you or others that read it to learn.

    The $600 money ($166 Billion) or $2000 (total $553 billion not approved for now):   

    The biggest core issue in the USA in the skew of wealth. Since the 1970's almost all the economy's gains after true inflation have gone to the top 10%, proven in large sets of numbers for another answer. One method, although median income is up 20% using Consumer Price Index in 50 years, it underweights housing, medical, education and is still only 0.4% per year compounded annually. The GDP has done far better in 50 years, so it went to the top via increased skew of wealth. Three other methods confirm all the money went to the top 10%. So, putting a flat amount $600 or $2000 at the bottom 2/3 improves the skew of wealth. Since the bottom 2/3 ACTUALLY spend the money, it is exactly where it belongs to boost the economy and reduce the skew of wealth slightly. The higher earners and wealthy get theirs if this was the only piece done because the flow of profits upwards as the money gets circulated and profits and taxes generated by it. When money is put at the top, it stays there, invested in financial instruments, raising the stock market 85% owned by rich people. When money is put at the bottom, the poor and working class come out ahead the most, but everyone eventually benefits. This is true modern macroeconomics. I have an MBA and do understand everything in the economy.

    Robert Reich is correct (former Labor Sec'y) and Andrew Yang is correct on paper but $1000/month minimum income is not manageable and doesn't work long term.

    So, other factors set aside, the direct checks are excellent and should be bigger actually.

    Step #2, the Federal Debt and 2017 tax cut:

    Reference the longer and picture-graphs 

    https://www.thebalance.com/who-owns-the-u-s-nation... 

    Here at end of 2020, $21.5 Trillion in debt owed from Federal to individuals, companies, and not Federal USA government intra-government and the $21.5 includes both domestic and foreign holders. $6.1 Trillion intra-government such as the bonds held in the Social Security Administration, and other Federal agencies. This $6.1 is right pocket/left pocket debt. The Federal Government owes itself $6.1 Trillion. I will not explain what Social Security and Federal pension benefits actually are because I am already too big here.

    The $21.5 Trillion is $6.8 owed outside the USA and $14.7 to mostly rich people, but some spread out. We pay interest on it that increases the debt and gives income to debt holders. When bond principals are due, we issue more debt to cover it. Yes, it's a bad situation that will eventually cause inflation that lowers the real value of that debt also. So far, currently, it is not causing inflation. The tax cut of 2017 went 85% to rich people and added about $600 Billion a year to the debt in a growing amount. It was a bad thing to do. 

    Step #3 - The Pandemic. 40 million households or people are facing eviction. Everyone in the bottom 2/3 are affected financially. The upper 1/3 have pretty much done OK, and the top 10% have done fine during this Pandemic. Even the front line workers who risked their lives, employed, can use a little reward. Most countries have given out far more money to people at the bottom affected. We have seen spot cost increases. By #1 I was clear that direct payments if not outrageous are a good thing, and we will need to do more for those months behind on mortgage and rent. Given our spirits and feelings, I am comfortable that this is as good a reason as any to spread a little cheer and it doesn't fix that much.

    Yes, the National Debt is a big demon to deal with and making it even bigger is NOT a good thing. You are correct. The problem though is not the $600 or $2000 or $300/week. It's the millions and billions of dollars of pork and rewards built into the 5000+ pages of legislation that is in there to get it through a Republican controlled US Senate now totally controlled by the wealthy. The Democrats have their problems in this also as money driven, but at least some of them seem to really care. I'm not disgusted with conservative financial or conservative values. We can chat about them realistically without being at war with each other. But the current Republicans use Conservative values as rhetoric to control the public and really have been 100% feeding the rich.

    Again, both Parties do it, but Republicans far more.

    I was independent as a fiscal conservative and social liberal for 50 years and registered Democrat in 2017, still social liberal and fiscal responsible but faced now with a massive skew of wealth on the brink of economic system overthrow. More on that another time.

  • ?
    Lv 7
    4 months ago

    Unemployed got extra funds the first 6 months, they should have learned to budget by now. It's not like it snuck up on them and such.  The only ones who should get anything, are those that can't receive unemployment for some reason or those that have been brought back but at less hours then before.

  • 4 months ago

    The problem with qualifying recipients is that it would be a bureaucratic quagmire that would cost more than the money saved.

  • Sam
    Lv 7
    4 months ago

    Yes, we should stop giving handouts to Jeff Bezos and other multibillionaires 

  • Anonymous
    4 months ago

    Stimulus meaning you help the economy. FACT

    Sitting at home while the rest of us work doesn't stimulate anything but your obesity, weakening immune system, and down spiraling mental health. FACT

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