Instead of giving money, why not suspend debt payments and interest growth?
I suspect it will need a bit of both.
Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
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Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#12The case for unconditional basic income has never been stronger.
Especially with disease precluding work.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#13https://petitions.whitehouse.gov/petition/suspend-mortgage-p... 3 signatures so far. If the housing market, core to our economy, can be insulated from a crash rebuilding will be significantly easier.
I think housing market in USA seriously needs a healthy correction to make housing available to masses again
Yeah, but if that happens, the economic factors leading to a housing crash (i.e. mass unemployment) will almost certainly also prevent most people who need affordable housing from being able to purchase it.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#14Instead of giving money, why not suspend debt payments and interest growth?
You would also have to suspend payments for food, paying rent, child care, health care, heating, ... The list of potential things that has to be suspended is endlessly large and by picking winners you are potentially creating a moral hazard. Rich homeowners with mortgages get bailed out while renters who have missed one payment may miss their second and third one and then get thrown out.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#15https://petitions.whitehouse.gov/petition/suspend-mortgage-p... 3 signatures so far. If the housing market, core to our economy, can be insulated from a crash rebuilding will be significantly easier.
The housing market is in bad shape as-is. Prices falling for housing would be good for a struggling middle class and below. Some states, like California, have policies that distort a free-functioning market. Many cities have artificially constrained housing stock by limiting new development via zoning.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#16Instead of giving money, why not suspend debt payments and interest growth?
In my opinion, it feels more like damaged image management to me.
Direct cash flow to citizens gives immediate association to the source of the cash and helps restore faith in the current US economic system and government, or at least makes people a little less cranky to soften the blow.
People want change and these issues are further highlighting massive systemic problems in the US to the population at large who are already looking for significant change.
To most, a onetime $1000 (the idea that was floating, this could be different) may pay one months rent or part of it to some, but it's not going to help when it comes to layoffs and downsizing businesses are sure to follow up with. To me, the elephant in the room will be medical expenses many are sure to incur and their associated fallout that's going to be very hard to make people forget.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#17https://petitions.whitehouse.gov/petition/suspend-mortgage-p... 3 signatures so far. If the housing market, core to our economy, can be insulated from a crash rebuilding will be significantly easier.
I think housing market in USA seriously needs a healthy correction to make housing available to masses again
Anecdotal, but many rental prices for new listings in NYC are nearly 30% off the norm in the last week (I’m a Zillow junkie).
I wish our lease was up now...
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#18Should also include suspension of residential rent payments. Otherwise renters are accumulating debt during the crisis (at best) which will also drag the economy and housing market down.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#19Economics is an interesting field of study with what seems like endless amount of differing views and such.
However, it seems that if you're looking for economic stimulus one of the most sure fire ways / proven ways / agreed upon ways to get bang for the buck is to give poor people money. Poor people will spend it, and you can be pretty dang sure they'll put that money into the economy and quickly.
I'm all for it.
Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress
#20Earlier quoted context omitted.
I think housing market in USA seriously needs a healthy correction to make housing available to masses again
Yeah, but if that happens, the economic factors leading to a housing crash (i.e. mass unemployment) will almost certainly also prevent most people who need affordable housing from being able to purchase it.
All else equal, getting rid of superfluous zoning rules that are preventing new construction and thereby lowering prices, wouldn't harm those who close to being able to afford housing today. Relaxing zoning doesn't hurt the economy. If anything, restricted zoning limits the economic growth we need.