US Financial Stimulus for Citizens
Details are still sketchy at present, but it appears that the US Government is proposing to issue individual cheques to its citizens for USD1,000 [or more!] to encourage a consumer driven boost to the US economy to offset the potential for recession because of the Coronavirus pandemic. It appears to be a variation of the Universal Income format, but using a single payment instead of a regular distribution and both variants have been mooted elsewhere as counters to economic downturns.
I can see that the spending boost will benefit the US economy, and that a decent chunk of the money would have to be distributed anyway to providing basic welfare support during the Coronavirus crisis. What I can't see at present is how, with shops and online distribution closing down in response to social isolation needs, and employees being laid off or sidelined with the infection, the purchasing activity can actually happen. Any thoughts, and should UK launch a similar programme?
Steve
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Sounds a bit political to me. 🤔
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TW, your response reminds me of my History Teacher's comment to the pupil who sat next to me, Dave Smith, and his answer to one 'O' Level question:
'Smith, when the Examiner set the question 'Do you think that Germany was to blame for the start of the Second World War?', he was looking for a more developed answer than 'Yes' ...
The teacher concerned was Joseph T Greaney, but, given that the exam in question took place in 1970, I suspect that he has long since achieved the status of 'biodegradable' ... But, he was a great teacher, and not a half bad Rugby coach ...
Nostalgia is not what it used to be ...
Steve
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It is what it is, Steve.
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2 Professors from University of California, Berkeley, have written an article on the financial stimulus within the last 25 minutes or so. They are arguing for the funds to be used by Governments [UK & US] to provide higher employee wages whilst they are laid off or ill with the virus, whilst employers are given loans/grants to help meet operating costs until the employees, consumer confidence and the respective economies recover and life gets back to normal.
https://www.theguardian.com/commentisfree/2020/mar/17/governments-crisis-coronavirus-business
Steve
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If such an idea is implemented in the UK ,should have the stipulation can only be used to pay essential bills & commodities
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Would also limit payments to households or family that receives income, from all sources, below the national average earnings
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It is political. I feel very sorry for a lot of Americans, for a number of reasons.
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Your claiming Corona virus is republican
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It's not a political decision; it is an economics decision, made on the direction of the President, and is designed to boost economic activity in order to limit the Coronavirus associated damage to the US Economy.
The 'cash injection' is based on saving jobs, GDP, essential services and overall wealth which is why it's going to be a huge amount of borrowing, tipped to be more than the equivalent during the 2008 Financial Crisis. Too little will not reassure the markets ...
Demand for US Dollars has risen significantly today, whilst Sterling has tumbled against both the Dollar and the Euro, the value against the former at its lowest for almost 35 years. This has been attributed, in part, to the UK's financial support for its economy not to have been brave enough in its 'bold initiative'.
Steve
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You have misunderstood my post Steve. I was saying this thread is political, I wasn’t commenting on what had been done.
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As was I with a nod to the T&Cs.
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Thanks for the clarification, TDA & TW.
My post was made purely from the economics aspect and the need to support economic activity to preserve jobs, living standards etc. Because that is what helps finance the shiny new caravans and the breaks therein!
Steve
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Steve
I don't see anything wrong with your post as far as the T&C's are concerned. The point about political subjects is that lead to disagreements because people become partisan which leads to arguments. I saw your post as purely as a factual analysis of the current situation if that helps.
David
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Tbh, David, I expected Steve's question about the launch of a program in the UK to lead to mayhem. I was wrong, it didn't. All credit to the posters who contributed.👍🏻
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I agree
This is a governmental response to the virus. As the Democrats have supported the measures, and not opposed, it is not political
There is a difference between a political, and a governments response
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