With the effect of the federal CARES Act stimulus bill currently wearing off and people running out of money even as there are still not enough jobs for those who need them, the American economy and the American people (especially the poor and most vulnerable) will be in for an even greater world of hurt for the foreseeable future if we don't act very, very fast. And not just America, but the whole world in fact is heading for a similar fate as well.
Sit down. We are essentially looking at the prospect of not just a recession or even a depression, but a lost decade or more. Within a few years or so the top 1% will fully recover and then some, enjoying a second Roaring Twenties of sports, while the bottom 99% would be mired in a second Greater Depression for a very, very long time. The ultimate K-shaped recovery. And time is running out to prevent the worst from happening, with yesterday not being soon enough!
Thus, a very, very big stimulus is necessary right now to prevent a long-term, full-blown depression of epic proportions. Depressions are fundamentally caused by a shortage of money. After all, GDP is literally just a spending measure, and most of that is consumer spending and government spending. The caveat, of course, is that not even all the money in the world could fill (and can barely even briefly paper over) the inherently massive hole left in a shuttered-by-fiat economy until after the economy is fully reopened, at least not for very long. Thus, the TSAP recommends the following steps be taken, yesterday:
- Expand the original $600 per week to ALL Americans period, not just those receiving unemployment benefits, no strings attached. Anyone with an SSN or ITIN gets it. Maintain such payments until at least January 2021.
- Create a permanent UBI for all Americans, of $230 per week ($1000 per month) for adults and half that amount for children and young people under 18, for when the temporary extra $600 finally expires. Again, no strings attached.
- Pass the HEROES Act and all of its associated stimuli, not the cheap Republican knockoff version. After all, without essential workers, civilization would have collapsed by now, so it is literally the LEAST we can do to thank them. But failing that, at least pass SOME stimulus bill already!
- Extend the eviction moratorium until January 1, 2021 or until enough of the funds from the above are disbursed into the pockets of the people so they can pay enough to avoid eviction, whichever occurs later. Consider also cancelling (and directly compensating landlords with federal funds) rent for all past due rent dating from March 1 until October 1.
- More funding to shore up small businesses, which are the very bedrock of the economy.
- Keep the US Postal Service running with whatever federal funds are necessary.
- Increase aid to the states, and funding for hospitals as well. And while we're at it, implement Medicare For All as well.
- Pass the Essential Worker's Bill of Rights.
- Three words: Green New Deal.
- And of course, open up fully and DON'T shut down again! Like, EVER.
The U.S. can't avert a financial depression if the highly corrupt Donald Trump wins re-election.
ReplyDeleteIndeed. The Trumpster Fire must be extinguished by voting him out.
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