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missingthebigdog

(1,233 posts)
Wed Mar 18, 2020, 07:38 PM Mar 2020

Is free money really the best answer?

Don’t get me wrong; I know we will need to provide actual cash assistance to some people to assure that housing and utilities can be maintained. I just question the wisdom of an economic stimulus package coupled with a self isolation policy.

Providing an influx of cash is going to encourage people to shop, and to hoard. It is going to encourage unscrupulous suppliers to price gouge, which will disproportionately affect the most vulnerable.

What is really needed is distribution of needed supplies. House to house distribution of food, hygiene items, and other necessities. Care packages, delivered at regular intervals. And visiting nurses (or nurses aides) that are equipped to assess people in their homes- not just to track and treat the virus, but to attend to other needs, such as diabetes, mental health, mother and child, etc.

Thoughts?

37 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Is free money really the best answer? (Original Post) missingthebigdog Mar 2020 OP
Is this taxable money? . . . Iliyah Mar 2020 #1
I'd say yes, it'll be taxable lettucebe Mar 2020 #31
Lack of products combined with high demand and free money could be a recipe for inflation. nt coti Mar 2020 #2
Not with a lit of unemployment. Happy Hoosier Mar 2020 #10
Exactly! Tink41 Mar 2020 #19
There's a shortage of some very specific items VMA131Marine Mar 2020 #11
people will spend it to pay basic bills like rent, not go on shopping sprees nt msongs Mar 2020 #3
Not shopping sprees- hoarding. coti Mar 2020 #6
I think the hoarding is a small 2naSalit Mar 2020 #15
The hoarding will burn itself out Aquaria Mar 2020 #37
Then it can be needs based. djg21 Mar 2020 #29
I think you're equating... stillcool Mar 2020 #4
If people can't shop missingthebigdog Mar 2020 #17
Intentions Tink41 Mar 2020 #20
You can't spend money on-line?? Bengus81 Mar 2020 #22
What is the point? stillcool Mar 2020 #23
In one week my son went from leasing a place to losing job and now in a year lease with no jobs. LizBeth Mar 2020 #5
sad to hear, best of fortune to you nt msongs Mar 2020 #7
Both of us are sitting pretty compared to a lot. But it cannot be sustained. So, we have to figure LizBeth Mar 2020 #9
I am so sorry. missingthebigdog Mar 2020 #13
I thin a couple months at a thousand would go far. People at this wage would be able to LizBeth Mar 2020 #14
Similar situation for my son, bartender in large hotel here in Florida, thank gawd his car is paid monmouth4 Mar 2020 #34
It's never free money PJMcK Mar 2020 #8
There is no place to spend it, restaurants, bars and malls closed. nt doc03 Mar 2020 #12
Even what *is* open is cutting hours on a daily basis durablend Mar 2020 #18
But for the people who have lost their jobs TexasBushwhacker Mar 2020 #32
I think it should be given to people that have lost their jobs. I will actully save doc03 Mar 2020 #33
It's NOT free money Nature Man Mar 2020 #16
No, I think that training and giving people jobs in place of what we're going to lose would be a far HotTeaBag Mar 2020 #21
Free money won't re-open restaurants/small businesses that have gone bankrupt. tinrobot Mar 2020 #24
I doubt this is free Texasgal Mar 2020 #25
My preference is this could be targeted more toward people... VarryOn Mar 2020 #26
It will amount to nothing because of the coming hyperinflation Generic Brad Mar 2020 #27
In one day mercuryblues Mar 2020 #28
The first step should be halting mortgage payments and underlying rent payments MoonlitKnight Mar 2020 #30
They need people to spend the money MiniMe Mar 2020 #35
They will most likely spend it on useless crap. rockfordfile Mar 2020 #36

lettucebe

(2,336 posts)
31. I'd say yes, it'll be taxable
Wed Mar 18, 2020, 09:15 PM
Mar 2020

Supposedly more than one month, but who knows? I heard them describe it as "some MAY get as much as $1000." Uh, some? May? Sounds like don't expect much, as per usual with the current administration

VMA131Marine

(4,140 posts)
11. There's a shortage of some very specific items
Wed Mar 18, 2020, 07:51 PM
Mar 2020

but we’re not seeing general product shortages yet. Food is still being produced and delivered. Many restaurants are offering takeout service. Money needs to go into the system to keep it from seizing up and causing a much deeper recession, and we are going to be in a recession.

 

Aquaria

(1,076 posts)
37. The hoarding will burn itself out
Thu Mar 19, 2020, 01:41 AM
Mar 2020

It always does. There's only so much TP you can buy and store, and you can't buy what isn't on the shelf, besides. Even when they have/get the most coveted items, retailers are now clamping down on quantities people can purchase. I can assure you that this policy will remain in effect until things settle down. As an added bonus, the voluntary rationing will help get to things settling down so much sooner. But if people don't behave, they'll be in for a shock when the government institutes strict rationing of assorted goods.

I think we'll avoid that, though. Once people can't buy willy-nilly, they'll realize they'll be fine with what they have/can get. Then they'll start calming down and the supply chain will sort itself out.

We go through a mini version of this hoarder insanity every time a hurricane threatens our Texas coast. This frenzy will take longer to sort out than the usual hurricane, but we'll get there, soon enough.

One way or another. It's up to us to decide which one it will be.

 

djg21

(1,803 posts)
29. Then it can be needs based.
Wed Mar 18, 2020, 09:02 PM
Mar 2020

The funds can be used to provide assistance to those who are living on reduced income, and unable to pay for housing, food, etc., as a result of COVID-19-related business closings. There are many people who are suffering financially, and things are only going to get worse. There is no need to pay money to persons who are not experiencing fiscal hardship. Trump is just trying to buy votes of dumbfucks.

stillcool

(32,626 posts)
4. I think you're equating...
Wed Mar 18, 2020, 07:44 PM
Mar 2020

what the world looks like today, to you, and not imagining what it will look like, say...next week. People are going to have a hard time shopping when nothing's open. There won't be any visiting anybody.

missingthebigdog

(1,233 posts)
17. If people can't shop
Wed Mar 18, 2020, 08:18 PM
Mar 2020

what is the point of the money? The whole point of a stimulus package is to encourage people to spend the money to stimulate the economy. No spending, no stimulus.

Please understand that I am not implying that people will go on sprees, or be wasteful, or don’t have needs. I am just positing that those needs might be better met through direct delivery rather than putting people at the mercy of the marketplace.

Tink41

(537 posts)
20. Intentions
Wed Mar 18, 2020, 08:27 PM
Mar 2020

It may be intended to keep economy going but I suspect it will be used to keep people in their homes.

Bengus81

(6,931 posts)
22. You can't spend money on-line??
Wed Mar 18, 2020, 08:32 PM
Mar 2020

Who says peeps won't buy things just because a brick and mortar is closed? Just spent $31 on Amazon this afternoon.

stillcool

(32,626 posts)
23. What is the point?
Wed Mar 18, 2020, 08:40 PM
Mar 2020

maybe helping people live? For many of us a week without a paycheck means no food, medicine, gas, rent. I would imagine a lot of people will spend money in the on-line market place, or other local places that deliver.. We've been at the mercy of these places all our lives.

LizBeth

(9,952 posts)
5. In one week my son went from leasing a place to losing job and now in a year lease with no jobs.
Wed Mar 18, 2020, 07:44 PM
Mar 2020

And I went from a job to a skeleton crew to a soon closing. With no option of other jobs. One week. What do you think? No fault of our own.

LizBeth

(9,952 posts)
9. Both of us are sitting pretty compared to a lot. But it cannot be sustained. So, we have to figure
Wed Mar 18, 2020, 07:51 PM
Mar 2020

it out. And there is constant change going on right now.

missingthebigdog

(1,233 posts)
13. I am so sorry.
Wed Mar 18, 2020, 07:55 PM
Mar 2020

I think a lot of people are going to be in the same position as you and your son. I wish we weren’t here.

What do you think will help?

LizBeth

(9,952 posts)
14. I thin a couple months at a thousand would go far. People at this wage would be able to
Wed Mar 18, 2020, 07:59 PM
Mar 2020

keep house but not so much to get take out. Those that get it and do not need it can pass it forward. We will see where we sit in two months. Well the next couple weeks would be a tell. Hence two months covered then we can address the new realty in a week.

monmouth4

(9,708 posts)
34. Similar situation for my son, bartender in large hotel here in Florida, thank gawd his car is paid
Wed Mar 18, 2020, 10:00 PM
Mar 2020

off but the landlord still wants his rent. Sad times, and he loves this job. They told him two weeks and then they would see how things were going. Who knows? So sorry for you and your son.

PJMcK

(22,037 posts)
8. It's never free money
Wed Mar 18, 2020, 07:49 PM
Mar 2020

We, the taxpayers, always end up paying for any "goodies" we're offered.

Don't trust Republicans!!!

Art imitates life:

durablend

(7,462 posts)
18. Even what *is* open is cutting hours on a daily basis
Wed Mar 18, 2020, 08:19 PM
Mar 2020

Walmart closing at 8:30pm now, Home Depot at 6 pm. Others likely to follow.

TexasBushwhacker

(20,204 posts)
32. But for the people who have lost their jobs
Wed Mar 18, 2020, 09:33 PM
Mar 2020

it can help tide them over until their unemployment kicks in.

doc03

(35,349 posts)
33. I think it should be given to people that have lost their jobs. I will actully save
Wed Mar 18, 2020, 10:00 PM
Mar 2020

save money sitting at home watching TV. I have lost around $60000 of my IRA on paper.
I can donate more to Joe Biden I guess.

Nature Man

(869 posts)
16. It's NOT free money
Wed Mar 18, 2020, 08:17 PM
Mar 2020

the US taxpayer pays into the system. It IS free money when taxpayer money is handed out to corporations, banks, and billionaires.

 

HotTeaBag

(1,206 posts)
21. No, I think that training and giving people jobs in place of what we're going to lose would be a far
Wed Mar 18, 2020, 08:29 PM
Mar 2020

greater thing to do in the long run.

We could work on training people to be techs to help out in hospitals that we build especially for victims of the virus, or open up new delivery services catering to those who will be sheltering in place in waves of outbreaks that will come (at least I think they will after this initial burst over time), work on infrastructure and expanding work on clean energy projects - sort of a new New Deal where we ensure that people can remain functional members of society rather than depending on government handouts that will mostly go to the banks and corporations anyhow.

In some ways there is a lot of opportunity to do great things as we rise from the ashes, which sadly will be squandered by our current administration.

tinrobot

(10,903 posts)
24. Free money won't re-open restaurants/small businesses that have gone bankrupt.
Wed Mar 18, 2020, 08:45 PM
Mar 2020

I don't see how thousand dollar checks solves that problem.

Texasgal

(17,045 posts)
25. I doubt this is free
Wed Mar 18, 2020, 08:46 PM
Mar 2020

Sounds like a great idea until we find out later in down the road what this stimulus really means.

 

VarryOn

(2,343 posts)
26. My preference is this could be targeted more toward people...
Wed Mar 18, 2020, 08:58 PM
Mar 2020

In a real bind. Send it to fewer people but give the more than a couple checks. I suppose the quick way, though, is to just send something to everyone. I'll find a use, to be sure.

mercuryblues

(14,532 posts)
28. In one day
Wed Mar 18, 2020, 09:00 PM
Mar 2020

2 people lost their jobs in the same household. My best friend worked 2 jobs and her DIL lost hers as a waitress. Her son is now the only one working and who knows how long he will be employed. They have 2 babies. Her husband just got done with his last round of chemo and can't work. They are barely afloat. 3 jobs lost...no pay for who knows how long. So no, they won't be out shopping except for groceries.

They'll be using it to pay bills and food, not for a new TV. Too many Americans are in this predicament. Paycheck to paycheck.

MoonlitKnight

(1,584 posts)
30. The first step should be halting mortgage payments and underlying rent payments
Wed Mar 18, 2020, 09:10 PM
Mar 2020

Government can cover the interest.

Then you move on to the helicopter money. And no means testing. It slows it down too much and and a person’s financial situation is likely vastly different today than yesterday. You can make it equitable on the back end. For every dollar sent out you boost next year’s tax rate to take back from those deemed to have not needed it - with a full deduction if they donated the money this year.

MiniMe

(21,717 posts)
35. They need people to spend the money
Wed Mar 18, 2020, 10:23 PM
Mar 2020

To get the money back into the economy. I think that is 1 reason they are talking about means testing. Sending out money to billionaires isn't going to get the money back into the economy.

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