nasura moi

Over the weekend the US Senate approved a massive $1.9 trillion stimulus package which aims to provide the country with much needed relief from the damage caused by the coronavirus. The package will be headed back to the House of Representatives this week for final approval and will likely then be signed by the president shortly after. While the bill is packed with aid (and pork) in the form of unemployment benefits, state and local funds, and money for schools, the stimulus checks are what most Americans are excited about. Well, not all Americans are excited for it. Almost all Republicans in Congress voted against the bill on the basis that we don't need it anymore since the economy is already recovering. Which made me think, what is it about direct cash payments that causes such fervent opposition?

Let me just preface my thoughts by stating the most understandable reason why some don't like “free” money: it's not free at all, it comes with a price. These massive stimulus packages that the US government has been deploying since the start of the pandemic are almost guaranteed to cause economic problems down the road. Whether it's inflation, deflation, or the utter collapse of the US dollar; printing trillions of dollars out of thin air will come with unforeseen consequences. The most disturbing statistic to me is that 40% of all dollars ever created were done so in 2020. We have kicked the can down the road like we always have, but at what cost? So I get it, trust me I do. But I still think we need stimulus. Why? Because the government has totally dropped the ball and is responsible for the mess we are in today.

Instead of bailing out the American people during the 2008 financial crisis, they bailed out the banks and threw us under the bus. Massive fraud and corruption by various institutions caused millions to suffer, and no one was held accountable (besides some random bozo). The $1200, $600, and upcoming $1400 checks are pennies and a drop in the bucket compared to how many trillions have been spent to save banks and corporations that deserved to fail over the years. Honestly, it's pretty insulting that our leaders think that a couple of thousand dollars will any way rectify all the damage that has been caused by their decisions... but it's a start.

Are stimulus checks printed by the Fed the best way to help the American people in our time of need? No. This is why I was such an ardent supporter of Andrew Yang during the Democratic primary. His 'Freedom Dividend' would have provided every single American, rich or poor, with a clean $1000/month forever. It was an elegant solution to a problem that our government to this day has no interest in solving: the ever increasing wealth gap. Andrew's approach was different, though, and this garnered support from both the left and the right. He wanted to pay for it by implementing a value added tax (VAT) across the economy, with exemptions for staple goods like food. This would result in major corporations who pay $0 in federal income tax finally paying their fair share, to the benefit of society as a whole.

I was never a huge fan of UBI, but the math checked out. And if it had been implemented before the pandemic, I can almost guarantee this would not be the tragedy that it turned into. Imagine every American having the financial security of steady income no matter what happened. Many people would have been able to stay home and not risked their lives unnecessarily for work. Renters and homeowners would have had options and could continue to pay bills and other expenses. What a different world we'd be in today, but neither party cared for it or him and instead we have our current predicament. Many are opposed to the idea of paying people to do nothing, but they miss the point that we've been robbed and this is simply making it right for once.

So I say keep those checks coming, this hasn't even scratched the surface of what the people need right now. The economy is likely already doomed due to the blatantly irresponsible policies of our leaders. I fear things will get very bad in the coming months and years, and as always we will take the brunt of it. The least our government can do now is give us a life jacket or five and let us try to save ourselves as best as we can.