Posted on 02/07/2021 10:51:19 AM PST by SeekAndFind
Treasury Secretary Janet Yellen on Sunday acknowledged the increased risk of inflation should Congress move forward and pass President Joe Biden's $1.9 trillion American Rescue Plan. According to Yellen, the benefits outweigh the risks, especially as Americans continue to suffer from the Wuhan coronavirus pandemic.
The secretary said that with 10 million Americans unemployed and another four million dropping out of the workforce, relief is needed to help them make ends meet. She also pointed out that a number of women who have dropped out of the workforce have done so because of childcare issues, which is another reason kids need to be sent back to school.
"People are on the verge of losing the roofs over their heads. The package provides rental assistance," she said. "We have 24 million adults and 12 million children that are going hungry everyday. We need to provide them with food."
The goal is to make sure there is no "permanent toll" on Americans, particularly low-wage and minority workers.
"We need a package that's big enough to address this full range of need and I believe the American Rescue Plan is up to the job," Yellen said. "My predecessor has indicated that there's a chance this will cause inflation to rise. And that's a risk that we have to consider. I've spent many years studying inflation and worrying about inflation and I can tell you, we have the tools to deal with that risk if it materializes."
"We face a huge economic challenge here and tremendous suffering in the country. We've got to address that. That's the biggest risk," she explained.
“We need a package that’s big enough to address this full range of needs and I believe that the American Rescue Plan is up to the job,” Treasury Secy. Janet Yellen discusses Covid-19 relief. “We face a huge economic challenge... and tremendous suffering in the country” #CNNSOTU pic.twitter.com/QA7ybkBtA6— State of the Union (@CNNSotu) February 7, 2021
The comments come after President Bill Clinton's Treasury Secretary, Larry Summers, penned an opinion piece in The Washington Post about the "admirably ambitious" stimulus plan, saying it brought "big risks." Specifically, Summers warned that the gap between actual and estimated economic output would be significantly higher than what was seen during the 2008 recession. That would mean inflation would be worse under this one economic package alone (not including the previously-passed relief bills).
"In 2009, the gap between actual and estimated potential output was about $80 billion a month and increasing. The 2009 stimulus measures provided an incremental $30 billion to $40 billion a month during 2009 — an amount equal to about half the output shortfall," he explained.
"In contrast, recent Congressional Budget Office estimates suggest that with the already enacted $900 billion package — but without any new stimulus — the gap between actual and potential output will decline from about $50 billion a month at the beginning of the year to $20 billion a month at its end. The proposed stimulus will total in the neighborhood of $150 billion a month, even before consideration of any follow-on measures. That is at least three times the size of the output shortfall."
Shouldn’t everyone get $800,000 over two years of “relief” from “Hedge” Funds?
” ... another four million dropping out of the workforce ... “
That’s what happens when democrats are in office. They drop a lot of people from the workforce (participation rate) so we don’t know the real unemployment numbers. It is just a crafty way for them to lie. The deep-state department of labor is all in with the demos.
What did the banks get in 2008?
The DC Swamp and “elite” are in it for themselves. The sooner we acknowledge this the better off we will be. Trump proved it.
This includes big bureaucrats and gov’t employees, our government institutions, K Street, Wall Street, politicians, think-tanks, the consultant class, big media, big tech, our oligarch class, and even many in the judiciary.
It’s like the Capital in the movie Hunger Games.
If anyone can prove me wrong fire away!
It is the government against the people.
Has she seen the weight of the average American these days?
The heck they are going hungry.
And if the kids are, it’s the PARENTS fault. THEY are the ones responsible to make sure their kids eat.
Short term loans, repaid at a huge profit to the US Treasury.
She doesn’t understand and respect inflation.
The severity of the jobs related issues discussed by Yellen are concentrated in Blue states.
Stagflation will be here soon.
The thing is only a small amount of the stimulus money is going to the people.
Most of it is going to the corrupt politicians in the “ Blue” states.😝
Captain Federal Reserve is here...
“We have 24 million adults and 12 million children that are going hungry everyday. We need to provide them with food.”
And 1400 bucks is going to do that right?
How about doing what Iowa just did? Open the whole dam thing up and let the chips fall where they may.
These critters in DC are worthless.
She made comments seeking the treasury secretary position early on, she said “ The loss of small businesses closing down due to the pandemic will give opportunity to people of color, gay and lesbian, transgender and women who will take their place in business and will be granted money by the treasury to reset the playing field of equality
Source?
Don’t let the facts throw you off course.......
Yes, the hunger thing as well as poverty stats are BS. When they count poverty, they do not include non-cash government benefits as income. So, somebody could be getting food stamps, welfare, housing, help with utilities, “free” phone, etc. and none of that is counted. People with all their necessities paid plus a small income (not to mention what they don’t report and cash from illegal activities) are still said to be living in poverty.
When it comes to hunger, besides food stamps there are numerous charities, food pantries, food giveaways, etc. so that nobody in the US is going hungry unless they are homeless mentally imbalanced and/or spending what they have on drugs or alcohol, or they are kids being neglected or abused by loser parents.
Just for the heck of it, I applied for food stamps in mid-October after losing some rental money we were getting from my brother-in-law, we basically kicked him to the curb, alcoholic and prescription drug addict. My husband is disabled and retired. We qualified for $16 a month. Then in December I saw the SNAP balance was over a thousand dollars, thought sure somebody screwed up somewhere. Turned out for October, November & December there were Covid emergency SNAP benefits giving all recipients the maximum amount of benefits. Just read that it was extended through January (maybe now February, too) along with a 15% increase to all after that until June, Trump signed the order, $2 billion dollar order, ChinaJoe may have added February.
I stopped ours after I was approved for social security spousal benefits last month. It was hard, believe it or not, to try and spend what we were given, I left a balance when I stopped the benefits. Back in 1999 we applied after my husband had been in a head-on collision and out of work for 8 months but were denied and told to sell our daughter’s new car that she commuted to college with, because my husband had co-signed her loan. Our only car, at the time, was totaled in the accident. We also applied for temporary rental assistance back then, in NJ, and two years later we were approved. Nowadays they just give the money away and Covid, Covid, Covid is the excuse for it and everything else under the sun.
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