So we sent $1,200 to every taxpayer in the country in an effort to stimulate the economy. How did that work?
CNBC reported, "Consumer spending tumbled a record 16.4% in April as the backbone of the U.S. economy retrenched amid the corona virus pandemic, according to a government report Friday.
"Economists surveyed by Dow Jones expected the advanced retail sales number to fall 12.3% after March’s reported 8.3% dive already had set a record for data going back to 1992. The March numbers were revised to be not as bad as the 8.7% initially reported.
"Some 68% of the nation’s $21.5 trillion economy comes from personal consumption expenditures, which tumbled 7.6% in the first quarter just as social distancing measures aimed at containing the corona virus began to take effect."
If the goal was to keep the economy going, the stimulus failed.
Just as Obama's did in 2009, 2011, and 2012. Once Republicans took the Senate, this nonsense stopped and unemployment finally dipped below 5%.
A stimulus will fail because it smacks of desperation, and a stimulus smacks of desperation because it is a move made out of desperation.
Now Washington is setting up the glasses for another spectacularly expensive failure.
CNBC also reported, "The White House would likely support another round of stimulus checks, two senior administrative officials told CNBC on Thursday.
"The White House did not provide further comment except to release a statement which said: 'As President Trump has said, we are going to ensure that we take care of all Americans so that we emerge from this challenge healthy, stronger, and with economic prosperity, which is why the White House is focused on pro-growth, middle class tax and regulatory relief.'
"The House is set to vote on a $3 trillion stimulus bill on Friday to blunt the corona virus pandemic’s devastating effects on the economy and health-care system."
This would be economic suicide if the unconstitutional, unnecessary, and ineffective lockdown had not already killed the economy.
It is dead.
The only way to resurrect the economy is to open it up. Immediately. Let the people decide if they want to get their haircut, surf, and enjoy life again. People will be slow to come out of the darkness. Eventually they all will at their own pace, not one set up by government bean counters.
The biggest boost of all would be to stop counting covid-19 cases. That is a scary number used to keep the panic going even as the number of deaths falls daily.
Amen to this post. Especially the last two paragraphs.
ReplyDeleteDont want money for nothing, its unAmerican.
ReplyDeleteGive us money to build infrastructure, to sanitize those filthy inner citites, and to serve our fellow citizens or to educate those in need to re enter the work force.
Going forward, the number most important is an increasing % of stuff we make for ourselves (instead of enriching red china).
Buy American
We can build our way out of this
I'm not sure that the "stimulus" bills are actually borrowed money. I believe they are pure Monopoly money, aka, running of the printing presses. Historically, printing money led to inflation. I'm not sure how much of that was because of the over supply of currency or lack of faith in the government (loss of confidence in the value of the money)
ReplyDeleteMy macro economics class taken when dirt was new didn't address what happens when the government is creating $Trillions out of thin air while a collapsing economy is making more $Trillions disappear just as quickly...as long as people haven't lost faith in the government and/or the value of the currency.
P.S. My 'stimulus' paid off a credit card. Thanks Uncle Sam.
P.P.S. Personal savings has soared in the last few months. Surprise government financial "experts". People facing the unknown HOARD. Most of the 'stimulus' money, except for those in financial straits, was stuffed into pillow cases.
J in StL
I read an accurate comment months ago that said, "Democrats would burn the whole place down if they could rule over the ashes." Well, they've burned it down. Now, if they can just get Trump outta' there, the Fourth Reich could begin, with 40% of so-called Americans cheering them on. - Gary B
ReplyDeleteNothing's been burned down just yet.
DeleteIt will take time to recover, but things should look a lot better in November.
NBADJT. I second Ed’s motion.
DeleteThe $1200 was intended to tide people over for 2 weeks until the lockdown ended.
ReplyDeleteThe Demos, of course, wanted to play Commie, so we have a bigger problem.
As The Eminent Mr Surber says, past time to open up the country and end this farce (which is what I've been saying all along).
What's needed is a suit at the Federal level to end this. Unless, of course, you want rioting in the streets.
Which might make more of a dent.
-The word "quarantine" originates from quarantena, the Venetian language form, meaning "forty days". This is due to the 40-day isolation of ships and people practised as a measure of disease prevention related to the plague.-
DeleteThe two weeks have passed.
Forty days have passed.
So open up the fooking country already!
Fook yeah man!
DeleteFookin' A !!
DeleteOh, I see what you're doing there. Clever, clever. Next time, maybe all caps?
DeleteI read somewhere that the fatality rate was somewhere around .02%, if you trust the people counting. Instead of "Give Me Liberty or Give Me Death", how about "Give Me Liberty AND a .02% Chance of Death"?
ReplyDeleteIn Florida the population is almost 21.5 million people. So far the deaths from the Wuflu are 1827. We killed an economy for that? 21,500,000 people and 1827 have died. Morons...
ReplyDeleteYes, Richard. I’m gonna take it one more step. TEN PERCENT of those who perished caught the Wuhan when they were healthy, not fat, not on drugs/alcohol, and weren’t counted fraudulently. So I believe the TRUE Florida number is actually like 183. 50 people a year die from lightning strikes in the US. It’s those kinds of numbers in reality.
DeleteI agree. I'm sure that number they give is grossly inflated! What a crock of bowel movements!
DeletePaid my Property Tax with the Stimulus-bought a new lawnmower..
ReplyDeleteNow if it ever stops raining and gets above 50F, I'm good.
Whether Congress in the end approves another round of these payments, I can't say. However, the House bill is loaded with pork, bailouts for blue states, and its socialist agenda. It will not survive in the Senate in the form it was submitted. This means the Senate will draft its own bill and there will have to be a conference that makes it acceptable for both houses and President Trump to sign. In other words, it might be a while before another stimulus is enacted.
ReplyDeleteSo they say. Never received a dime and neither did many people I know. Think it's a big fat lie.
ReplyDeleteImagine if we would have had a competent president with a cohesive response to this pandemic.
ReplyDeleteHis cult claims he closed the boarders, but instead let 40,000 US travelers abroad into the country from China without quarantine. Trump closed nothing.
No stimulus would be needed had Trump been even partially competent.
Instead we get gross incompetence from the Trump administration. False claims of miracle cures and magic beans don't fix the economy. Fix the pandemic and you fix the economy. Trump doesn't have a clue.
Hey, jackass. He allowed 40,000 AMERICANS to return to America. You never mentioned that part though. Because you are a liar and all leftists lie.
DeleteThis is the result of the Muslim ban lawsuits. Liberals must be regretting that now.
DeleteWhat's a "cohesive response"? Does it involve duct tape?
ReplyDeleteIf anyone ever tells you that you're not a dimwit, they're a liar.
ReplyDeletewell, i'm using our $2.4k as part of a down payment on a house.
ReplyDeleteWe've got a list of things we want to spend our stimulus $ on as soon as the shops open. Not one item will be made in China.
ReplyDeleteHaven't seen the stimulus check yet. Or the unemployment I applied for in March.
ReplyDelete