Predictions for further stimulus

[QuarterMillionMan]

I tried to link the debit card to my Coinbase account to buy $350 worth of bitcoin but no can do (I think Coinbase considers this a prepaid VISA card so cannot link). Instead on Money Network website they list ATMs where cash withdrawals can be made without the surcharge fee. After work today I'll try to get the $350 from a CVS near me in Los Angeles, good problem to have. Beats having to spend it for gas, groceries, etc. And having to keep track of the balance remaining on the card but another good problem to have as well.

[QuarterMillionMan]

Ha-ha.

[ua_guy]

How much more welfare can the feds pass out?

Well since it's a tax refund and not a stimulus, and it's being implemented by the State of California, and not the Federal Government, you don't have to worry. QMM is getting money returned to him from the previous year's taxes.

QMM...if you're against the "helicopter money" then return the funds to the CA treasury as a donation.

[QuarterMillionMan]

I hold the same sentiment as rennigade, and I am on the receiving end of all this helicopter money. All this free money will cause more inflation. It's not sustainable to keep giving away free money.

[rennigade]

How much more welfare can the feds pass out?

[QuarterMillionMan]

I thought it was junk mail, this is what the envelope looks like which I almost tossed out but I felt the plastic card inside so decided to open it up and good thing that I opened it. Also, if I had one kid the amount would be $700. So I'm guessing a married couple filing jointly with kids gets the max of $1050.

[QuarterMillionMan]

[QuarterMillionMan]

I activated this California middle class refund just now for $350 out of $1050 (I think). I was hoping for $1050 but $350 is great and I'm not complaining, lol.

[Scallywag]

The stimulus money has income restrictions. Maybe those that received the money met the income guidelines. In the part of California where I live, an annual GROSS income of $150K is "middle class", because you'd make around $90K post tax - which is hardly anything when you consider that a one bedroom apartment costs around $2100. It's outrageous.

We've struggled to save & can't wait to move. My H works in a very niche sector, is older and, unfortunately, does not interview well. So we've been stuck. But once he hits retirement age, we'd move elsewhere. Anyway, to reiterate, any further stimulus payments must be income restricted, preferably based on COL because, in some places, the dollar really does not go very far.

Unfortunately.

[kork13]

I should have clarified. I didn't like where PPP money was taken and employees were laid off, or where businesses weren't struggling and had no plans to lay off or stop paying employees, but took the money anyway. In my humble opinion, it didn't appear they needed it whereas other businesses desperately did.

In many instances, it helped, especially smaller companies and organizations. You've mentioned some great examples.

Correct me if I'm mistaken, but didn't the PPP program not even use a LARGE amount of the funds allocated by the CARES act (on the order of $X00B), which funds were reallocated to the second stimulus package? Doesn't that indicate that the program wasn't utilized as extensively as it could have?

Not saying that PPP wasn't abused -- as any government program, abuse & loopholes & unintended effects are almost assured. But why didn't more small companies pursue that money?

[ua_guy]

Clearly PPP was not a perfect system but the program did do a lot of good for many businesses and, through that, for the individuals who work for those businesses.

My daughter's job got a PPP loan. That enabled them to pay her for 8 weeks of the time that they were shut down which was super helpful since she didn't qualify for unemployment.

My former practice got a PPP loan. Due to Covid, the practice had nearly no money coming in but that allowed him to keep paying the staff.

The same for our synagogue with the PPP loan they got. It let them keep the lights on and the staff paid.

I have no problem, in general, with helping businesses as well as individuals. They are certainly suffering too. And if they're suffering, their employees are also suffering.

I should have clarified. I didn't like where PPP money was taken and employees were laid off, or where businesses weren't struggling and had no plans to lay off or stop paying employees, but took the money anyway. In my humble opinion, it didn't appear they needed it whereas other businesses desperately did.

In many instances, it helped, especially smaller companies and organizations. You've mentioned some great examples.

[disneysteve]

I didn't like a lot of what I saw with the PPP

Clearly PPP was not a perfect system but the program did do a lot of good for many businesses and, through that, for the individuals who work for those businesses.

My daughter's job got a PPP loan. That enabled them to pay her for 8 weeks of the time that they were shut down which was super helpful since she didn't qualify for unemployment.

My former practice got a PPP loan. Due to Covid, the practice had nearly no money coming in but that allowed him to keep paying the staff.

The same for our synagogue with the PPP loan they got. It let them keep the lights on and the staff paid.

I have no problem, in general, with helping businesses as well as individuals. They are certainly suffering too. And if they're suffering, their employees are also suffering.

[ua_guy]

The important part to remember about stimulus checks or any government money... If you don't want it, or didn't want the government to spend it, you can gift it back to the US treasury. So far, nobody I've heard of crying about inflation and government spending has ever done so. They took the money.

With a clear path for legislation and stimulus, I hope our lawmakers come up with a way to help. Put money in the hands of individuals, not big business. IMO, let moral hazard take its course for businesses. I didn't like a lot of what I saw with the PPP and the percentage of money going to large business versus individuals.

I also hope part of the stimulus goes to new startup and SBA loans too. A lot of small businesses will need to rebuild and it will be a great time for entrepreneurs to get their start.

[disneysteve]

For the people who don’t “need” it but still receive, at least they can put the money back into society. Local business, charity etc.

kind of works out.

True, and that's really the point - to stimulate the economy. They want people to spend that money.

[Jluke]

For the people who don’t “need” it but still receive, at least they can put the money back into society. Local business, charity etc.

kind of works out.