Thoughts on a government cash stipend

[disneysteve]

There seems to be growing support in Congress for a one-time cash infusion of $1,000 per adult to help boost the economy. Thoughts?

Obviously, if they went to send me $1,000, I'll take it, but how much good will it do? If everyone is stuck at home and most businesses are shut down, that money won't even get into the economy until everything starts opening up again. Of course, even if they do approve it, it will take some time to get the money sent out so things might be getting back up and running by then.

[skives]

I definitely won’t refuse it but it’s just a bonus for us. For others that live paycheck to paycheck it will help some for groceries or bills if they are without work for awhile but I don’t see it helping for me than a few weeks. If they don’t save for emergencies before they won’t stretch this $1,000.

[cypher1]

$1000 per adult one time in the US to help the economy when the majority of shops or services are already being shutdown? I know we're not supposed to go political on this forum, but does that proposal really make sense when that money could be focused more on medical supplies, treatment, etc? Honestly, up until this thread, I thought that was a joke proposed by Rommney.

[bjl584]

not sure it would do most people any good.
some yes, but most would probably spend it frivolously.

is giving every American $1000 better than pumping a trillion into the markets?
I don't know.

[cypher1]

not sure it would do most people any good.
some yes, but most would probably spend it frivolously.

is giving every American $1000 better than pumping a trillion into the markets?
I don't know.

Agreed. On the flip side, I do know some single parents who could use the money for their kids expenses. So it wouldn't all be wasted.

[Fishindude77]

They would be better off distributing some needed supplies and food.

[kork13]

I don't remember the details, and the situation is different, and the effects are probably arguable.... But what was the impact of when Obama's administration did something similar back in 2009-ish?

If I recall correctly, survey data showed only a portion of that stimulus package money was used for essentials, with the remainder saved or spent frivolously (TVs, etc.). I suspect similar would occur of they do that now. I know that I would save/invest that money, though we also have a stable income & emergency fund.

I'm of the mind that if they're going to launch a huge spending package, it should go toward the root of the problem (healthcare & disease prevention) vs. a symptom (economic impacts). As I/we have said, once the government appears to have a handle on the situation & it's improving, the economy will likely come roaring back.

[~bs]

it's been done before. It really depends on who you give the money to. I'd imagine most members on this forum would save or invest it.

[disneysteve]

I don't remember the details, and the situation is different,

I think this is really the key - the situation is different. This time, you have probably more than 50% of the nation's workforce sidelined, most with zero income. That's unprecedented.

My daughter's job shut down for at least 2 weeks. She's earning zero right now. Fortunately she's okay but how are people supposed to pay their rent, their bills, their student loans, their car payments, put food on the table, pay medical bills, etc?

I don't think it's such a bad idea.

[skives]

I don't think it's such a bad idea.

Definitely not a bad idea. Just like anything someone will waste it. I read three Democrats want to give $4,500 per adult.

[james.hendrickson]

Definitely not a bad idea. Just like anything someone will waste it. I read three Democrats want to give $4,500 per adult.

I'll take $4,500.

[ua_guy]

I think it would be a good PART of a relief package. A thousand bucks per adult doesn't mean much, but it does put food on the table and pay for minimal expenses while people are out of work, or in-between a layoff and being able to collect unemployment. The other pieces of needed relief is being able to defer debt payments temporarily and/or some kind of medicaid expansion to cover healthcare for families who are now without it.

[greenskeeper]

I'd take whatever amount and put it back into the stock market

[bjl584]

I'm usually not for hand outs, but the government caused all this by mandating shut downs and closures.
So, there should be some sense of obligation for them to help fix it.
The Treasury Secretary said something similar yesterday in an interview.

[disneysteve]

I'm usually not for hand outs, but the government caused all this by mandating shut downs and closures.

Do you think that was a bad thing? I can't tell from your post.

I think part of the reason for all of the mandated closures is that people wouldn't follow directions otherwise. Look at the spring break crowds on the beaches in Florida. Total lunacy in the face of what's occurring but it didn't stop them. So unless the local/state authorities mandate closing the beaches, those idiots would continue to gather there.