Posted on 03/17/2020 6:36:12 AM PDT by knighthawk
White House officials and congressional lawmakers are signaling they will attempt to push through a third coronavirus spending package worth hundreds of billions of dollars even as the Senate works to move along the more modest second relief bill that focuses on leave for workers and expedited testing for the disease officially known as COVID-19.
Fox News has learned that the White House specifically is pushing an $850 billion stimulus, largely in the form of tax relief measures.
Roughly $500 billion of this would be tied to a payroll tax cut, while $250 billion would come in the form of Small Business Administration loans and another $58 billion would be directed to the airline industry, among other measures.
(Excerpt) Read more at foxnews.com ...
Question for FR economists: When this WuFlu blows over, is all this quantitative easing and fiscal stimulus going to whipsaw into hyper-inflation?
These are not Federal Reserve helicopters showering money on us.
The US government has helicopters too!
Why isn’t Bloomberg giving a million to every American?
< /s >
After the extensive looting under the Obama ‘Stimulus’ this had me worried. Seeing how most of the Trump stimulus involves letting business keep its own money that is a good thing.
So FNC uses a headline that makes it sound like a 500 billion dollar tax cut is a spending bill.
I’m no economist, but the cure for inflation is usually to raise interest rates. If we decide we need to do that, we are in excellent shape to take the action.
A payroll tax cut won’t help anything if people are forced to stay home from work due to state imposed quarantine. Which is where this is headed.
Cut federal spending.
Where does the money come from? We’re broke!
How about no income or sales tax until after Memorial Day.
If they're talking about the payroll cut lasting past the election then the cost of that alone in lost revenue will be greater than the $850 billion.
We could start a rumour that abortions spread the virus.
Question for FR economists: When this WuFlu blows over, is all this quantitative easing and fiscal stimulus going to whipsaw into hyper-inflation?
...
All the easing during the Obama depression didn’t cause inflation.
The key is to keep the economy growing.
Im saying this again, Germany has a program a temporary business government partnership that’s worth looking int. Employers hold on to all their employees, cut their exposure time on the job, pay them half their salary and the government subsides the other half temporarily until this is past us. This way they don’t lose their jobs, the employer holds on to employees and the unemployment and joblessness stats stay steady. COMMENTS?
Same as here in the Netherlands.
....and not one penny of that $850B for the wall.
I’m no economist, but the cure for inflation is usually to raise interest rates.
...
That’s a tradition, not a cure.
The cure is to keep the economy growing and productive.
Look at places like Zimbabwe and Venezuela as examples. They lost economic productivity and had shortages.
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