Instead of giving money, why not suspend debt payments and interest growth?
Actually, we should be paying Interest only for the next few months. The Principal should be deferred.
Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
81–90 of 266 posts
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#82Hmm. A lot of businesses will get into big trouble over the coming weeks and potentially months. Bars, event organizers, even shopping malls. They're all going to go down to almost zero profit for a while. The problem is if you just give people money right now, they literally can't spend it on those things because they are or will be closed during that time. Money isn't the reason they're not going, Corona is. The mo…
The workers at these establishments, especially those whose income is tied to tips, will certainly need this extra money for rent, food, etc.
Some absolutely will. That's not really what I'm trying to argue against, people who would become homeless or starve should absolutely be helped.
However, a lot of people seem to be under the impression that this would boost the economy (because the idea is that almost everyone gets money so they can spend it instead of specifically helping with rent or food), which I don't think it will currently, or at least it won't in a meaningful way that helps the businesses who need it.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#83I've heard people say this won't change anything, and that rich people will just use it to buy gold-plated toilets while poor people will use it to buy meth waffles.
I remember the last time everyone got checks from the government.† The $1,200 I got was enough to keep my family from living under a bridge.
There are tens of millions of people living paycheck-to-paycheck, so even if this helps some people, I'm in favor of it.
† https://en.wikipedia.org/wiki/Economic_Stimulus_Act_of_2008
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#84As long as the money is given to folks who need and/or will spend it, it feels like this is the exact situation where the federal government steps in for stimulus. There’s no pull yourself up by your bootstraps talk right now and there shouldn’t be. I know the single parent working a couple of jobs will spend every dime they’re given in a time like this, just to survive. A yuppie like me would just park it in my savi…
> A yuppie like me would just park it in my savings account until I feel we hit bottom, then invest it. That sounds like stimulus to me.
more like quantitative easing.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#85Earlier quoted context omitted.
I mostly agree; the only caveat I'd give is that it's tough to say how much longer any of us are going to be yuppies right now; I work for one of the many big megacorporations whose stock is tanking right now. If the stock doesn't pick up soonish, there's a non-zero probability of me being laid off. While I'm not that worried (I've been able to find work in bad economies in the past), I also do feel a bit of paranoia…
Can you explain how your job is directly related to the company's stock trading price? Not being sarcastic are something, just genuinely curious?
The stock price is determined by dicounted cash flow valuation of profit, or at least what stock traders estimate it to be. If the stock price is crashing, that means traders are predicting reduced profits. Reduced profits mean layoffs.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#86Earlier quoted context omitted.
The most important aspect of the claim about spending money is the broken window fallacy. Henry Hazlitt wrote a great book on the subject called Economics in One lesson. The simple example is that we can't go around breaking windows to stimulate the economy. Sure, the window manufacturer and the window replacement companies might benefit, however that money which went towards the window could have gone elsewhere. Eng…
The simple example is that we can't go around breaking windows to stimulate the economy. Sure, the window manufacturer and the window replacement companies might benefit, however that money which went towards the window could have gone elsewhere. You misunderstand. The window is already broken. Everyone would be better off if the windows was fixed, but if the government doesn't help pay for it the window will never g…
The windows aren't broken. And we both know it won't be meth, its the new fancy fentanyl.
those are not mattresses. those are bank accounts.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#87Earlier quoted context omitted.
I mostly agree; the only caveat I'd give is that it's tough to say how much longer any of us are going to be yuppies right now; I work for one of the many big megacorporations whose stock is tanking right now. If the stock doesn't pick up soonish, there's a non-zero probability of me being laid off. While I'm not that worried (I've been able to find work in bad economies in the past), I also do feel a bit of paranoia…
Can you explain how your job is directly related to the company's stock trading price? Not being sarcastic are something, just genuinely curious?
> Can you explain how your job is directly related to the company's stock trading price? Not being sarcastic are something, just genuinely curious?
It’s indirectly related through the executives who make decisions that are primarily motivated by the stock price.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#88Actions have consequences. Your income and your future pension are going to pay for this in one way or another.
I think this is one of these situations in which doing nothing has a higher cost than doing something, even if that something(give people money for free) is generally bad in most circumstances.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#89As long as the money is given to folks who need and/or will spend it, it feels like this is the exact situation where the federal government steps in for stimulus. There’s no pull yourself up by your bootstraps talk right now and there shouldn’t be. I know the single parent working a couple of jobs will spend every dime they’re given in a time like this, just to survive. A yuppie like me would just park it in my savi…
> Since the administration wants to prop up the markets, this also helps accomplish their goals.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#90Earlier quoted context omitted.
I mostly agree; the only caveat I'd give is that it's tough to say how much longer any of us are going to be yuppies right now; I work for one of the many big megacorporations whose stock is tanking right now. If the stock doesn't pick up soonish, there's a non-zero probability of me being laid off. While I'm not that worried (I've been able to find work in bad economies in the past), I also do feel a bit of paranoia…
Can you explain how your job is directly related to the company's stock trading price? Not being sarcastic are something, just genuinely curious?
situation is something like:
Stock price going down means market expects less profit
Directors who can react to this change and minimise loss or find opportunities, should.
This can be increasing revenue (assuming that's tough, otherwise the stock price wouldnt be tanking), or reducing cost (some development work created, a lot of other work lost, including dev / management)