Yuge Silver Lining for the US Economy?

Politics
1

Let’s see (in no particular order):

Fed interest rate near zero (it’s about time). Huge buying opportunities in stock market. Sending $$$$ to virtually all Americans (equivalent to a tax break to those not unemployed … not sure if retirees get $$$ since their SocSec income continues). Financial assistance to small/medium businesses means job retention, payroll continuity, and likely some job growth. Pent up demand for goods and services in the marketplace. The pressure to bring more manufacturing to the USA could result in a major construction and jobs boom. All of this (And more) leaves me very optimistic about the economy.

Generally speaking I am not too concerned deficits, but respect those who may be. And yes, I am genuinely concerned about the obvious health considerations … so bleeding heart replies are not necessary.

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2

Pluses and minuses here.

It took China three months to “get under control” (I have that in quotes because they had 38 new cases yesterday- “repatriated” cases, not new domestic ones, but still…

Italy is not under control yet. Worldwide, cases are going up almost everywhere, so even if some parts of the economy come back online, international sectors are shut down for some time.

Plus- we could use the infrastructure investment and try to bring critical manufacturing back here.

3

This event could also instill a cultural disgust for crowds, public spaces, and human interaction in American consumers.

There might be new a normal of automation after this in the service industry. I think I got a glimpse of it yesterday when the supermarket had no human cashiers at all, just self-checkout machines and clerks offering assistance to the few people who had difficulty with them.

4

Most countries benefit somewhat from tourism.

For certain small countries, that’s all they have.

The poverty in those countries, as the tourists stop coming from around the world, is going to be dire.

They were already struggling and this will put them over the edge.

5

You could be right about that. Just to be clear I was focusing on USA in original post.

6

It would seem some GOP senators are pushing back on Trump’s $1200 / person giveaway program.

7

Deficits are probably their concern. Guessing. Refinancing debt with lower rates on the horizon will save quite a bit.

8

So massive deficit spending, stimulus and falling stocks is a “silver lining” now?

9

Not now, but by Sept 1st is my current thinking

10

Its a zero sum game. All whats happening now is that the costs are being shifted to the US government. We will pay for it all either way

11

Stimulation is our salvation. Capitalism thrives on it. Lots of stimuli headed our way. Making lemonade out of lemons.

12

This whole thing is just one giant bail out of wall street. For the last decade, they have been piling on the debt into their companies to buy back shares/give themselves bonuses, and now they are going to transfer that debt to you and I, the taxpayer. They should get nothing, the people who lose their jobs should be made whole and that is it. The companies should enter into bankruptcy and the assets should be sold off to the highest bidder.

THAT is capitalism.

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13

The time frame will be the critical factor. I hope you are correct and we will be on the backside of the curve by September. But if we are not we could see our economy in a state where we have not gone before. Unemployment benefits and the level of government bailout is limited. And by the fall a whole bunch of low-wage workers will be really hurting.

14

Shelby at least had a point.

Under the plan I’d qualify for the payments.

I’m still working and will be doing so for the conceivable future. I don’t need the checks.

Use the money to bolster unemployment so they get regular payments and make sure there are payments to small business owners who can’t claim unemployment.

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15

It’s never been about capitalism. It’s always about making sure you get yours, no matter the method.

Funny how “just the flu” crowds are so willing to accept probable $2trillion+ deficits, handouts, and bailouts again.

Funny now how government should now play a big role in our healthcare. Surely the free market can just spin up some new hospitals.

16

Makes sense.

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And the more I read the more I agree with the GOP Senators who are objecting.

Lindsay Graham rightly points out that two $1,200 checks are meaningless. That’s just money.

What Americans are going to need during this time is income to get their basic needs met.

And it just has to be basic needs. No one is going to be spending any disposable income at this time…even those that have it.

I have no problem with their objections in the slightest.

Essentially what’s happening here is we are trialing Universal Basic Income…Yang’s concept that he ran on.

Conspiracy Theorists…make of that what you will.

18

Trump wanted a second tax cut for middle class. Payments (2 initially) accomplish the start of that. In business/economy you can either try to you can try to solve problems by cutting costs and/or increasing revenue. Send me a couple/few thou I don’t “need” and I will likely spend most/all of it which combined with my fellow Americans doing the same is what keeps the system going. That’s why imho we should flood the country with those checks. Keep em comin too.

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None of those Senators care a whit about deficits. They blew the debt sky high with the 2017 tax cut without a word about deficits. Deficits are a trotted out when a policy is proposed that Republicans oppose… it’s the policy, not the deficits.

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Deficits are almost irrelevant but some cling to the deficit alarm button when don’t know what else to say. Over and over and over.

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