Posted on 03/26/2020 8:43:43 AM PDT by Steve1999
It makes sense that the federal government is stepping in to provide financial relief to the millions of citizens facing economic ruin due to the coronavirus crisis and subsequent government restrictions on activity. But what’s unconscionable is the fact that, thanks to the way Congress spent the last decade ignoring any sense of fiscal responsibility, coronavirus relief must come at the cost of further indebting future generations and dimming the outlook of our financial future. It’s not the $2 trillion price tag on the coronavirus relief bill, passed Wednesday evening by the Senate, that does this in and of itself. One big spike in government spending during a crisis isn’t, or at least shouldn’t, be the end of the world. The way it’s supposed to work is that during times of growth and prosperity, such as the last decade or so, lawmakers are supposed to rein in budget deficits. That way, they will later have the leeway to borrow and spend during a crisis without completely torpedoing the national debt.
(Excerpt) Read more at washingtonexaminer.com ...
If it’s financed at 0% interest, it’ll cost them $2 trillion.
But a portion of that is going to flow back to government anyway through income taxes.
And what’s the cost of not protecting the economy?
I think there is a fair chance of a massive debt reset coming. China needs to pay for this crap.
Fortunately, many had already dipped into it.
I sold my stock in December to have money for cataract surgery available. It was $18/sh....now it's 10/s. I lucked out. Except they shut elective surgery down and the second eye is on hold. In the fall....it's not real bad like the first one.
$2T is just today’s price. There will be another one this year, and no doubt another after next year’s closing.
What we are doing to our children, grandchildren, and future generations of America is immoral, unconstitutional, and unethical.
It should be illegal. This is wrong.
onservative Inc” need to stop with the knee jerk ideological reactions.
If China had declared war on the US none of you would say a word about this spending. This China Virus is doing more damage to the US, and the World, economy then any war in our history.
Yes we all wish this was not necessary. Yes, we wish this was a clean bill without the usual pork vote buying tactics. Well welcome to the messy workings of legislative politics in a Constitutional Republic.
People have to deal with the world as it is right now, not as they wish it would work. We can go back to the ideological wars in 30 days.
Corporations employ tend of millions of people. Corporations are everything from your local privately own gas station down the street to massive operations like Ford or Delta Airlines.
Corporations have debt they have to play just like people. For example, When they build a new store or plant, they borrow money to finance the capital expense. In addition, they do not usually pay cash for daily supply delivers. Those are purchased are made on credit with 15-30-45-60 days to make payment. All those debt payments still have to be made even thought the Government shut them down or put a lock down on their customers.
Here is an example. I work for a Food Manufacturing corporation that employs about 5,000 people nation wide. Due to the loss of business from the slow down, they just cut all Executive and Sr Management salaries 20%. If this goes one 2 more weeks, they will cut middle management salaries, if it goes on a month they have to cut all salaries. After that they start laying off worker bees like me and shutting down production lines. Why? Because they have to have the money to make their debt payments now and hope they can make it up to employees later.
We are an “Essential Business” not shut down like the Airlines or the Car companies. The US, and the World, are on the brink of a financial crisis like nothing seen since the 1929.
Those credit bills have to be paid even if they are shut down by Government order. The people supplying them need to be paid so they can pay their creditor and so on and so on.
If they are not paid, this will trigger a cascading financial default on scale with what happened in 1929.We not talking about just crashing our economy here, we talking trashing the worlds economy if this is not addressed
If China had declared war on the US none of you would say a word about this spending. This China Virus is doing more damage to the US, and the World, economy then any war in our history.
Yes we all wish this was not necessary. Yes, we wish this was a clean bill without the usual pork vote buying tactics. Well welcome to the messy workings of legislative politics in a Constitutional Republic.
People have to deal with the world as it is right now, not as they wish it would work. We can go back to the ideological wars in 30 days.
Corporations employ tend of millions of people. Corporations are everything from your local privately own gas station down the street to massive operations like Ford or Delta Airlines.
Corporations have debt they have to play just like people. For example, When they build a new store or plant, they borrow money to finance the capital expense. In addition, they do not usually pay cash for daily supply delivers. Those are purchased are made on credit with 15-30-45-60 days to make payment. All those debt payments still have to be made even thought the Government shut them down or put a lock down on their customers.
Here is an example. I work for a Food Manufacturing corporation that employs about 5,000 people nation wide. Due to the loss of business from the slow down, they just cut all Executive and Sr Management salaries 20%. If this goes one 2 more weeks, they will cut middle management salaries, if it goes on a month they have to cut all salaries. After that they start laying off worker bees like me and shutting down production lines. Why? Because they have to have the money to make their debt payments now and hope they can make it up to employees later.
We are an “Essential Business” not shut down like the Airlines or the Car companies. The US, and the World, are on the brink of a financial crisis like nothing seen since the 1929.
Those credit bills have to be paid even if they are shut down by Government order. The people supplying them need to be paid so they can pay their creditor and so on and so on.
If they are not paid, this will trigger a cascading financial default on scale with what happened in 1929.We not talking about just crashing our economy here, we talking trashing the worlds economy if this is not addressed
Keystone Keynesians see bad times as demanding more spending and good times as an opportunity to spend more ... they are no longer pump priming but engaging in economic masturbation, they see any old excuse to spend and they’re away!
... we are governed by lunatics, a nation of people that abuses debt should expect nothing better.
Those children this generation doesn’t murder.
I believe that the funds for large business will be 0% loans that will be paid back. Also, funds for small/medium business will be loans that will be paid back or forgiven, depending on how the funds are spent.
$2 trillion is just the start.
Peoples’ children, grandchildren and great grandchildren will despise them for allowing this to happen.
And all of the debt prior to that through multiple Presidencies?
It is a trend. While we can have a rational debate regarding the current crisis and I would likely agree with many of your points, there is no denying that our debt was even continuing with the best economy we have had in my lifetime.
We must get control of entitlement spending. We must have a plan to retire the debt. Instead, we have politicians who think deficit spending is normal in good times and necessary in slim times.
Where does it end? I am fine with it in times of war, but how will all of this impact my children who are too young to vote? Our politicians kick the can on our debt because it is the expedient thing to do and to do otherwise would almost guarantee their electoral defeat.
I do not want the economy to tank. However, there is nothing about this virus that justified some of the CRAP they put in the bill or tried to put in the bill.
Meh, what’s this we have now?
WOW do you sounds like a DEMOCRAT :)
So Many here do nowadays!
You sure you’re on the right site?
Welfare and snap filter through to landlords and grocery stores that pay taxes too.
It’s all good!! :)
The House and Senate are totally doing this because of this election. Can’t wait to vote for my Rep’s opponent.
The debt keeps going up and up and up
What if we just paid people for actual losses through unemployment and then give businesses of all sizes tax breaks. Wouldn’t that cost us less rather than assuming that every adult lost $1200? Open businesses again and get people back to work. Then this whole thing will be like a bad dream rather than a nightmare that comes back to haunt us and future generations over and over again.
Well we’ve spent that much in Afghanistan. I’d rather give it to a crackhead in Camden than to a goat humper.
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