stimulus MONEY to big businessES

The stimulus package helped support families, and we were grateful. Americans for Tax Fairness also reports the tax breaks will afford $135 billion to the wealthy, nearly triple what the CARES Act spent on safety net programs for the poor ($42 billion), also more than the support for hospitals and public health ($100 billion).

While the $500 million in small business loans to public companies will presumably be paid back, circumstances could prevent the return of much of it. Two top economic advisors to the government recently discussed the issues.

“What the fed does, just by the necessity of the cost of processing the transactions, will be at a larger scale…the gains from that will trickle down” (Altucher, 2020a, 17:27). Another stated, “There is definitely going to be some misallocation of this money, and there is going to be some outright fraud, but even that, to a macroeconomist, as long as the fraudsters go out and go to dinner, like when the thing’s over, it is still money into the economy…. It’s probably not well-targeted. I don’t understand why it was done” (Altucher, 2020b, 28:38).

It’s no mystery why it was done. It’s all about keeping the current economy afloat, because economists concern themselves with the interests of the leisure class that has the most to lose from instability of the current economy, while there is little thought of how their policies have been affecting families struggling to make ends meet.