How to Stimulate the Economy in the Current Crisis
A few days ago I posted the below on Facebook. I intended to post it here as well but with the events of this past week focus has been on other events. The focus of all the news media has shifted from COVID-19, the Lockdown and Re-Opening America to one of the tragic death of George Floyd and the violent protests that have ensued. Nonetheless, the country remains partially under Lockdown and millions of people are still out of work and suffering the consequences of the devastation to America's economy. We still need a solution to both problems.
Congress is intent on their hidden agenda. They claim they want to stimulate the economy and get America up and running again. When really they want to help their cronies continue to stay in power and make more money.
The best way to help America would be to open up the country once more. With certain safe practices in place but with businesses open. Then take the $3 trillion in stimulus passed by the House and give it to the 170 million households in America. Almost $18,000 per household. It could help to get caught up on your mortgage or rent after being out of work for 2 months. It might go towards paying off other debt accumulated as you were out of work. Maybe pay down that student loan. Or remodel the kitchen. Maybe it becomes a down payment on a new house or a new car. Maybe you need a new washer and dryer or dishwasher. Perhaps some new clothes. That long-awaited vacation after being cooped up for nearly three months. Whatever you spend it on, it will go towards some business and help them put people back to work. Help to produce more goods, offer more services. A win-win for everyone.
It makes no sense to give the money away to States and Local Governments. With the above plan State and Local coffers will once again begin to fill. It makes no sense to give it to big businesses claiming the have been hurt economically when they can still use their borrowing power or sell stocks to generate investment. The only plan that makes any sense is the one I have outlined. Give the money to the people. It needn't be called a loan because they are going to pay it back in taxes anyway. It may take a few years but taxes are one of the two certainties in life.
It has been several weeks now since some states began to open. The fearmongers said there would be significant spikes in cases and deaths. There have been a couple of states showing spikes but not anything significant. Any spikes could be the result of increased testing. Nearly 18 million tests have been administered. Half of those in less than a month. The 7 day rolling average of new deaths has been on the decline for over a month. There is evidence 65% of cases in the recent months were people who had sheltered in place. There is more than ample evidence COVID-19 deaths are highest among the most vulnerable elderly people. 95% have been over the age of 65 and many of those suffered with a compromised immune system due to diabetes, high blood pressure, chronic lung diseases or something else. There is absolutely no need to continue to live under a general Lockdown.
End America's Lockdown. Let's put this behind us. I firmly believe much of the frustration from being locked up is being vented in the violent protests we have seen this week. That is not to say there is not reason to decry the egregious use of force seen from the officers involved in George Floyd's death but confusing the issue with violence, destruction and malicious attacks is not a solution. While fighting fire with fire may work for those who are trained in fighting forest fires, it does not work when we are trying to voice a grievance we have against those who have committed atrocities. We are much better off when we can articulate calmly reasoned arguments based upon facts and not on emotions. Emotions can help to convey the message but only when we can articulate the message. Otherwise it comes across as a spoiled child's temper tantrum.