Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

wsj.com

Post reply on HN
Print view View original

121–130 of 266 posts

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#121

Post by heymijo »

shartshooter wrote: post #26

As 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…

Implied in your comment is that today's crisis is one similar to 2008 in that the economy needs "stimulus."

Today's crisis is different. The regular economy is grinding to a halt because we have to in attempts to slow the spread of the coronavirus.

What individuals and every component of the economy need are deferral and cancellation. Rubidium talked about it in another post. [0]

$1,000 to a family that is living paycheck to paycheck doesn't solve the problem. Do a search and most surveys put America at somewhere between 70-80% of workers living paycheck to paycheck.

So let's discuss giving Americans money but only to move the Overton Window. Then let's lead that discussion to solutions that address the fragility of our economic problems at their root--both in the short-term and long-term.

[0] https://news.ycombinator.com/item?id=22604982

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#122

Post by WarChortle18 »

pingyong wrote: post #82
mtberatwork wrote: post #61

Earlier quoted context omitted.

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…

Not yet but businesses are closed. So employees can't work and owners can't make money. Employees still have other bills to pay.

When the businesses open people could be so indebt they aren't able to start spending again quickly. The 1000 dollars won't boost the economy right now but will help recover faster when things start going back to normal.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#123

Post by jordanpg »

The assume that form that this would actually take would likely be promised 2020 or 2021 tax credits -- anything else would be logistically too slow.

This form is only useful to people who already have cash or ready credit available.

Not obvious to me that this would help the many millions who need cash to spend right now.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#124

Post by glitcher »

runawaybottle wrote: post #103

How does direct cash help the underlying problem? People can’t go outside and do stuff. We need loans for businesses and relief for companies to weather a pause (so layoffs and closings are mitigated).

It is not meant to fix the underlying problem. It is meant to help those in need buy essential items like food and medicine, and possibly even pay their rent, but it probably won't be enough for even that when your family needs to eat first.

I think direct cash to individuals is only one small part of the bigger picture though. And to your point, businesses are going to need help too. It's not a matter of choosing only one or the other path, but finding a balance employing multiple strategies simultaneously.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#125

Post by unknown_library »

dpcan wrote: post #72

Chasing our own tails. If this virus does very little to zero damage in the US, I’m afraid it will become the worst “cry wolf” situation in the history of humanity.... when the truly dangerous bug arrives.

If it does very little damage, then mission accomplished.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#127

Post by xefer »

shartshooter wrote: post #26

As 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…

I've seen people mention putting some sort of "use it or lose it" time limit on the money, so that people are motivate to inject it directly into the economy instead of just sitting on it.

I'm not sure how feasible such a thing is or if it would hurt the cause of keeping the economy moving.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#128

Post by sailfast »

shartshooter wrote: post #26

As 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…

"Means testing is hard. [Sending a check] is easy." Don't add the overhead / cost / etc for the benefit - speed is key, just cut the check in my opinion.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#129

Post by wmeredith »

etxm wrote: post #112

Honest question, not an economist. How would giving everyone money impact inflation? Is giving money the same thing as “printing money?”

Giving money != printing money. If I give you $20 that doesn't mean I fabricated the bill myself. The money could come from any numbers of places in the vast Federal budget.

Re: Giving Americans Money to Offset Coronavirus Impact Gains Support in Congress

#130

Post by oiasdjfoiasd »

shartshooter wrote: post #26

As 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…

no, we should just give it to everyone.
Post reply on HN