How Stimulus Kills The Economy

Someone who is smart enough to know what he is getting paid to say.

– Definition of an expert, offered by a Dear Reader’s college professor

WEST RIVER, MARYLAND – No weight-loss expert was ever invited onto the Oprah show to showcase his new book, Don’t Eat So Much.

Nor did any household finance book, with the self-explanatory title, Save Your Money, ever make it onto the bestseller list.

And if you are waiting for an economist at the Federal Reserve to tell colleagues to “back off and let the economy do its thing,” we hope you are not holding your breath.

Borrow From Tomorrow

The “experts” most in demand are those that tell the lies the public wants to hear. Such as… how to bail out the U.S. economy.

The latest news from USA Today

Stimulus checks part of looming COVID-19 relief deal as Congress finalizes negotiations

Lawmakers closed in on a roughly $900 billion COVID-19 relief deal Wednesday morning that may include another round of checks and other much-needed financial benefits for Americans, according to a source familiar with negotiations who wasn’t authorized to speak on the record.

More money! Whoopee!

The idea is simple enough. The experts say that if we just give people money, they will spend it. Businesses will make sales. Consumers will consume. It will look like a healthy economy again.

But where do the feds get the money?

Never mind. You know as well as we do that they don’t have any. The federal government is already scheduled for a $2 trillion deficit this fiscal year.

The feds will “print” the currency.

But as you also know, there is no wealth that is not created by the people themselves, trying to “give and get” in the Main Street economy.

And, ultimately, one way or another, the “money” the feds distribute today has to come from the people tomorrow.

Well, that may not be so bad… If drawing on the resources of tomorrow helps us out of a problem today… what’s so bad about that?

1 2 3 4
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.