Which part of the TRILLIONS is GOOD for us??
Or the debt??
Or future generations??
I see the monetary policy as relatively harmless as the Federal Reserve can undo it’s actions. They can sell any bonds bought back no the street. They can raise rates. They can unprint money simply by reversing the techniques they use to print it.
Riscal stimulus to the extent that it’s loans tend to get paid back with interest. So I’m not worried about loans.
art of direct payments does flow back to the US government automatically through income taxes. The distributions are probably taxable. When they spend the money, they labor component that they spend it on pays taxes too. So there’s a multiplier effect that sends a portion of the money back to US Gov each time it’s spent. I estimate that eventually could be a third of the direct payments.
The question isn’t whether the Trillions are good for us. There’s no question that the world before Coronavirus and counter measures was better than after Coronavirus.
But we play the hand we are dealt. Coronavirus is here. The right question is “What do we do now.”. Letting the economy nearly die and recover on it’s own, seems a poor choice, given that we do have tools to help it.