Posted on 04/17/2020 1:28:34 PM PDT by Kaslin
Rarely has a word been subject to so much misuse in recent years as “stimulus.” The Coronavirus Aid, Relief, and Economic Security Act (CARES), overwhelmingly passed by Congress and signed by President Trump on March 27, represents an apex of this language malpractice. The stated purpose of this $2.2 trillion “stimulus plan” is to boost our economy in the wake of virus-induced mass layoffs and business closings. But the implicit purpose is paying people not to work. Section 4022, a residential landlord bailout, effectively does that. And it may prove very expensive.
Fear of COVID-19 has triggered an economic downturn potentially rivaling that of the Great Depression. With “social distancing” now the gold standard for staying healthy, especially in venues where people congregate (e.g., restaurants, theaters), employers, prodded by state mandates and federal guidelines, are closing shop or severely restricting hours. A staggering 22 million unemployment insurance claims have been filed within the past month. For people without a job, even given the enhanced unemployment benefits authorized by CARES, the risk of losing one’s housing has become real. Though the U.S. Department of Housing and Urban Development now spends nearly $24 billion a year on Section 8 low-income rental vouchers, some tenants are getting desperate. Since many governors have seen fit to shut down state economies, the range of employment alternatives isn’t that wide.
Section 4022 provides temporary respite. It authorizes up to 180 days of forbearance for federally-backed residential mortgages on rental properties with one-to-four dwelling units. If a participating landlord needs more time to stay current, he may apply for a 180-day extension. In any case, there are no fees, penalties or interest.
To supporters, this measure is essential to our economy. With forbearance, landlords presumably are less likely to evict non-paying tenants, and tenants thus are less likely to wind up in a homeless shelter or on the street. But like all bailouts, this one may resolve a short-term crisis by laying the groundwork for a worse one down the road.
Tenant anxiety meanwhile is finding political expression. Radical housing activists, not letting a crisis go to waste, are organizing rent strikes. Hashtags such as #CancelRent, #KeepYourRent, #RentZero and #FoodNotRent have been popping up and making an impact. According to an ad hoc online group, Rent Strike 2020, at least 1.5 million renters nationwide have signed an agreement to withhold rent starting May 1. Another group, 5 Demands, is providing information on how to conduct “accessible and empowering” rental strikes. One of its organizers explains: “All you need is to be able to talk to your neighbors and tenants around you. If you knock on every door in your building and ask them to sign a common letter to your landlord, you have already organized.”
If such collective resistance gains traction, it could seriously disrupt landlord cash flow – precisely the purpose. As a consequence, property owners would demand more federal intervention. Even if rent strikes subside, more intervention may happen. Rent strikes, after all, can backfire. Aggressive government support and control would cover investment risk, pleasing landlords and tenants alike. The rest of us, unfortunately, would pay.
Local government officials aren’t likely to mind. They have plenty to gain and nothing to lose by leaning on Washington, all the while maintaining austerity measures. Indeed, their constituents are likely to praise their “leadership.” Elected officials in a number of major U.S. cities, including Boston, Los Angeles, New York City, Philadelphia and San Francisco, in fact, have joined hands to persuade federal and state lawmakers to cancel rental and home mortgage payments.
Since removing the price mechanism from the housing market is a radical notion, congressional radicals understandably are for it. Case in point: On March 31, the Brooklyn, N.Y.-based Center for Popular Democracy organized a nationwide conference call for about 200 housing activists to explain how renters and homeowners can skip payments while avoiding eviction. Participants included Reps. Jesus “Chuy” Garcia, D-Ill., and Rashida Tlaib, D-Mich. Ms. Tlaib has made clear her end game. In response to the Italian government’s cancellation of mortgage payments, she excitedly tweeted: “Yes, this is exactly what we need to be doing.”
As long as there is widespread support for shutting down economic activity as a means of quarantining the coronavirus, it will be difficult to reverse a cycle of job loss and rent nonpayment. That is why Section 4022 is likely to last a while. Indeed, rather than repeal the program, Congress is far more likely to expand it to include multifamily structures.
To head off any worsening situation, we must reopen our economy. Realistic tradeoffs between restoring full employment and protecting public health can be debated. What can’t be debated is the fact that shutting down an economy has highly negative consequences. We are witnessing those consequences. COVID-19 kills. So can the lack of a job.
How are the young and/or romantic people supposed to date?
There will likely be a brand new version
of that movie :”Dirty Dancing” coming out next year.
People love breaking taboos.
My niece works in a Big Box store. My SIL was FURIOUS that my niece was being ‘forced’ to work ( the store is open so she is expected to work) without PPE. I said ‘well they should be able to find some masks, etc’. She said ‘oh, I have masks that I use in food prep’. I asked why didn’t she give one to her daughter and she said she offered but my niece said she didn’t want one. WTH?
It took me a short amount of time to realize that my ‘hair on fire, Lib’ SIL was angry my niece wouldn’t be getting paid to stay home. Money for nothing.....it’s the Lib way!
I can see the satire now:
A young couple circling and staring at each other like a couple of wrestlers ready to pounce, but keeping a safe social distance.
Then, while staying apart, each launches into orgasmic sounds just by being near each other.
And just like that, social distanced sex is born for a new generation. . . .
You joke, but telesex is under development. https://emerj.com/ai-future-outlook/virtual-sex-the-unspoken-driver-of-iot-innovation/
...and ALL chicks for free. Oops, until China screwed that up. The phone sex industry is going to make a killing. Thinking about creating a porn site that only includes actors 6ft apart playing out would they would do normally. Talk about safe sex...ha.
Kabuki theater, but American style, wearing masks gloves, Yoga Pants and Bluetooth!
“But like all bailouts, this one may resolve a short-term crisis by laying the groundwork for a worse one down the road.”
These are what are euphemistically called “moral hazards”.
A less fuzzy and more explicit term is “rewarding and encouraging irresponsible behavior” or creating an environment that condones such behavior.
One can justify what has been done in this emergency as a necessary temporary evil, but it must be nipped in the bud as soon as possible or else it gets institutionalized.
Given the Rats preference for such things, they’re going to make it as hard as possible to end it. They also understand that anyone who tries to put an end to bennies that people have gotten accustomed to will pay a huge political price. They intend them to be Trump and the Republicans,
We live in a sick, sick world and it is steadily getting worse. What do you expect from a couple on a date sitting in a restaurant and BOTH are texting other people. If I am going to be alone, I would rather do that while actually by myself
And just like that, social distanced sex is born for a new generation. . . .
******
Then the Mom’s Basement Dwellers become the new sexual gurus. They’re a full generation into that practice already.
What’s the old Coca Cola jingle: “There’s nothing like the real thing, baby. There’s nothing like the real thing. . . .”
Got married in January after 18.5 years single from divorce. I can’t claim abstinence during that time (thank God) but some periods were slow, disheartening and lonely. There IS nothing like the real thing!!
Gee, you have got to be kidding. Getting paid staying home. What was your sister thinking.
At first I thought she was actually worried about their daughter catching COVID. Really she just wanted her to stay home and wait for the free money.
Don’t rent to Bernie bro’s. Not worth the hand holding hassle.
Dr. Fraud Fauci said it was OK to HOOK UP ON TINDER!!
ROFL
Is there a turkey baster in your scenario?
See comments: CARES ACT shuttering grocery stores http://www.freerepublic.com/focus/f-news/3835803/posts
Should be mentioned that often times they are either 1) dealing with things from work and are stealing time away to try to go on a date - welcome to the modern working world - or 2) texting each other things that they would rather not say out loud in public. The latter is more common and sure beats Boomers ‘whispering’ what they’re going to do to each other after dinner. Hint: Yes, everyone else can hear you; no, we really didn’t want to know what you’re going to be doing with the popsicles, dog collar and riding crop later this evening. :P
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