I am not alone when I say that Congress shouldn’t have given the first $2 trillion stimulus, and now Congress just passed a little more than a billion and a half and talking about Phase IV, which will deal with infrastructure.

Would things have been worse if Congress would have extended/increased unemployment payments while adding people that with reduced income from the virus?

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Just sending money out is not the answer. We have too large of debt now, with it almost reaching $25 trillion. Why increase it for people working, retired, already on govt assistance, etc.? If your income was not affected, you shouldn’t have to pay for the sake of paying money out.

Millions of people started receiving their emergency stimulus checks last week, but apparently it’s just a start. According to a new survey, 84% of Americans would already like to receive a second round of governmental help as the coronavirus pandemic continues.

The COVID-19 outbreak wiped out more than 22 million U.S. jobs in just about a month, essentially debilitating the national economy. In response Congress passed a $2.2 trillion stimulus package that ensured virtually all Americans receive a one-time stimulus check of $1200. That money is a huge help for the millions struggling financially in the wake of this pandemic, but let’s face it: $1200 doesn’t get you all that far in 2020.

At this point it’s impossible to say when the economy will return to “normal,” and who knows how long it will take for the average American to get back on their feet. This month’s rent may be paid, but next month represents an ever present problem for millions right now.

The survey, commissioned by WalletHub, included 350 nationally representative respondents. Besides its revelation regarding stimulus checks, the survey also estimates that 160 million Americans are less than three months away from going completely broke. A staggering 29% of respondents are less than one month away from running out of money. [StudyFinds.org]

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Debt is never “canceled,” so don’t let any politician feed you that bad piece of fat. That is an accounting and economic impossibility. Someone “pays” either the borrower or the lender, but I am afraid the third possibility is most likely, the taxpayer or future taxpayers, if government funds debt write-offs with more debt. In that case, the borrower and lender both benefit at the expense of the present and future taxpayers at large.

Per accounting rules, a loss provision MUST be booked every year by businesses to account for future NON-repayments. This is a standard business expense. They book a loss in the current period and increase a reserve on the balance sheet for future write-offs.

Now we are talking larger than normal write-offs, which means the provision for losses will be larger. Banks have recently increased the loss reserve on their balance sheets by large amounts. That is why many banks are going to show losses for the quarter and the year.

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Most Americans live WAY beyond their means with credit cards and paycheck to paycheck. This experience should be a lesson for everybody to live below their means and save for a rainy day!

The government has only encouraged this kind of mindless attitude. Because the less you have, the more dependent you are on it. Let’s not forget Obama’s “The life of Julia,” where he painted his vision for the “transformed” America. Total dependence on the government, from the cradle to the grave.

This puts citizens in the position of beggars, unquestioning beggars. I am appalled that half of Americans are for it — and the majority of the next generation.

 

 

This piece was written by Wayne Dupree on April 22, 2020. It originally appeared in WayneDupree.com and is used by permission.

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