Plans for Extended Unemployment Benefits, Wage Subsidies Risk Creating a Zombie Economy

[KenH]

“Nevertheless, if we can't expect much of the pre-pandemic economic activity to return, that dramatically weakens the case for propping up businesses as Jayapal and Hawley want to do, or paying workers to stay jobless like the HEROES Act does. Both policies stymie markets' ability to adjust to COVID-19 while shifting resources from those parts of the economy that can be productive during a pandemic to those that can't. If there's no demand for air travel, we'd be better off seeing baggage handlers shift to being warehouse workers or grocery delivery drivers. We want cooks and cashiers to move to restaurants that can figure out a way to stay profitable without dining service.

That doesn't mean the government can't provide relief. Even if we allow those readjustments to happen, we'll still probably have a less productive economy for a while, and the negative effects of that will be concentrated on people who aren't in a position to adapt. So there's a reasonable case for cash transfers targeting the poorest Americans. But they shouldn't be conditioned on staying at their current jobs, and—unlike unemployment benefits—they shouldn't be conditioned on staying out of the labor force altogether.

The innovation-breeding creative destruction of free markets is important during good economic times. In a pandemic, it's essential.”

Plans for Extended Unemployment Benefits, Wage Subsidies Risk Creating a Zombie Economy

 

[Salty]

then the House wants to give Bonus checks to illegals!
and what were the other pork the Dems put in?

 

[Adonia]

That doesn't mean the government can't provide relief. Even if we allow those readjustments to happen, we'll still probably have a less productive economy for a while, and the negative effects of that will be concentrated on people who aren't in a position to adapt. So there's a reasonable case for cash transfers targeting the poorest Americans.

Direct cash to people is money down the drain. Okay, people need to eat, so the government can provide the basics like eggs, milk, pasta, beans, rice, potatos etc. to those that need help. You just know that the money they get is going to go for things like a new TV, gaming console, booze and the like and not to basic sustenance.

All the government has to do is allow open things up with the sensible precautions and people can make their own cash through the long established concept of work. This "free cash" is only playing into the hands of the Democrats who long have wanted a "living wage" for the people and if they can't get it on their own they want it provided by the government. The proposal is 6k a month for every family or 72k a year and that my friends is a completely ridiculous and unsustainable proposal.

 

[KenH]

The proposal is 6k a month for every family or 72k a year and that my friends is a completely ridiculous and unsustainable proposal.

Which is why is really isn’t worth even discussing. It will never pass.

 

[Salty]

One of my pet peves -(at least here in NY) The Salvation Army thrift stores have been closed.
1) the employees lost a job
2) the cutomers are not able to buy the things (that often) needed.

 

[Calminian]

Newsom of CA is now demanding the Feds fund his lockdown. Hope Trump denies him.

 

[Salty]

Newsom of CA is now demanding the Feds fund his lockdown. Hope Trump denies him.

or is it the State/Commonwealth - that should bail him out?

and do you blame him? How can he pay his bills (rent, electricity - for example)