Federal Government's Response to the Coronavirus

George_Apley

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And yet, Drumpf is saying pay people $2k on twitter tonight, Pelosi saying she will do it, and McConnell (I assume, on the way to his home in KY).
Lol. Well... this was always going to be interesting.
 

TallIsGood

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Because billions to foreign countries doesn’t really matter as long as we send $600 to some Americans.
 

George_Apley

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Because billions to foreign countries doesn’t really matter as long as we send $600 to some Americans.
You’re feeding into the false conflation between the govt funding bill and the COVID relief bill that was appended to it, which does a lot more than send a wimpy $600. Congress sucks and is a barely functioning institution, but there are a lot of bad takes out there about the omnibus.
 

Johnnyrocket891

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Congressional leaders seem to have struck a bargain on a COVID relief bill. It's relatively meager compared to our peer nation's relief responses. Nothing that would actually allow and incentivise governors to go back towards shut-downs that would stifle spread until the vaccine can be rolled out in sufficient numbers.
The problem with this is it will only drive costs higher and higher for the group that is gets the 600.00 dollar check.
A $600 dollar check for a month but it creates an inflationary process on necessity goods and services and erodes most American's purchasing power long-term.

900 Billion-- Stimulus-
Has anybody see what's in bill?
Alot of money is going overseas and special interests. Not good.
 

George_Apley

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The problem with this is it will only drive costs higher and higher for the group that is gets the 600.00 dollar check.
A $600 dollar check for a month but it creates an inflationary process on necessity goods and services and erodes most American's purchasing power long-term.

900 Billion-- Stimulus-
Has anybody see what's in bill?
Alot of money is going overseas and special interests. Not good.
The $600 check is mostly useless. I'm still perpetually confused by your drum-beat on inflation.
 

Johnnyrocket891

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The $600 check is mostly useless. I'm still perpetually confused by your drum-beat on inflation.
It's not inflation-- It's called currency devaluation which creates an inflationary process for the middleclass consuming necessities in life.
If you don't understand this you will never get it.
 

ra84970

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I mean some of that foreign aid is just committments that we're following-up on. And it's only currency devaluation when we don't tax the rich or their investment income at rates like we used to.
 

HenryAlan

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The problem with this is it will only drive costs higher and higher for the group that is gets the 600.00 dollar check.
A $600 dollar check for a month but it creates an inflationary process on necessity goods and services and erodes most American's purchasing power long-term.
There is no inflation risk from people individually spending $600. Also, even if a stimulus did create inflation (no evidence that it would), the alternative of a mass economic collapse is far worse.
 

George_Apley

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Inflationary pressure has been quite low since at least the Great Recession. The Fed has been trying to hit inflation targets for years and has largely failed. As far as my understanding at least. Maybe I'm out of date though, I haven't paid close attention to econ stats lately.
 

TallIsGood

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Inflationary pressure has been quite low since at least the Great Recession. The Fed has been trying to hit inflation targets for years and has largely failed. As far as my understanding at least. Maybe I'm out of date though, I haven't paid close attention to econ stats lately.
Look at the prices of stocks, housing, and other assets that are supported by the Feds monetary support. That’s where inflation is showing up not in goods prices necessarily.
 

KentXie

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It's not inflation-- It's called currency devaluation which creates an inflationary process for the middleclass consuming necessities in life.
If you don't understand this you will never get it.
Actually this perspective is too simplified for the current environment. First prices on necessity goods have risen due to decline in supply which is due to the impact of the pandemic on supply chain (I'm going to exclude toilet paper in this explanation because that's a whole another dynamic). As supply chain adjusts, pricing should return back to normal. What you don't want in this situation is to have demand continuously fall because more and more people completely deplete their saving. Visually on a S&D graph, you have the demand curve continually shifting left over time until at one point, the equilibrium pricing, where the supply and demand curve crosses, will fall below a price point where it's profitable for suppliers at its current production level, which would lead them to cut production, shifting the supply curve to the left. This is bad because cutting capacity (shutting down some factories)) means that when the economy starts to recover or when the government does step in to provide a stimulus, there will be a lag on the supply side due to the time needed to ramp up production (hiring workers back, turning factories back on) which would lead to an even higher inflation in the short term. Keeping these factories on, by stabilizing demand through a stimulus, would reduce the impact of a demand shock.

Credential: BS in Economics blah blah blah
 

Johnnyrocket891

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Child care and Medical have clearly outpaced inflation-

1609631752425.png



--whatever the Govt has control of (College, Childcare, Healthcare) sees massive inflation while free markets continue to see deflation


1609631841434.png


What happened in 1971?
No more gold standard--



1609631896375.png
 

ra84970

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George_Apley

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Did you just say that the federal government controls the price of college tuition? Or private school tuition? Or private college tuition?
It's a fairly common conservative/libertarian argument that Federally-backed student loans are the primary cause of price inflation at colleges and universities.
 

KentXie

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Honestly, it's questionable whether it's even worth living in the US anymore. Nearly a quarter of the world's cases and twice the amount of India which is number 2 and half the nation still believing that COVID is fake and/or masks does not mitigate spread. 1/6 of the death occurred in the US. Given how nearly 75 million people voted again for this incompetent administration, this is the fate we deserved.
1609827404811.png


Source: https://www.worldometers.info/coronavirus/#countries

And before someone response with a snarky comment like "Good luck finding a country better than the US", I'd jump on the next flight to Australia or New Zealand if I can, left handed driving be damned.
 
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TallIsGood

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Honestly, it's questionable whether it's even worth living in the US anymore. Nearly a quarter of the world's cases and twice the amount of India which is number 2 and half the nation still believing that COVID is fake and/or masks does not mitigate spread. 1/6 of the death occurred in the US. Given how nearly 75 million people voted again for this incompetent administration, this is the fate we deserved.
View attachment 9237

Source: https://www.worldometers.info/coronavirus/#countries

And before someone response with a snarky comment like "Good luck finding a country better than the US", I'd jump on the next flight to Australia or New Zealand if I can, left handed driving be damned.
Make a snarky post expect a snarky response.
 

KentXie

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Make a snarky post expect a snarky response.
Wish I left this country sooner. Got a positive result today, all because one fucking person who decided to not only not wear a mask in the train, but also not adhere to social distancing and sat 3 feet away from me. It literally took less than 5 minutes of sitting in close proximity for this to happen.

So please, don't be a dick. Wear a mask and social distance.

Also open to an AMA if anyone is curious as to what having COVID is like. Generally the answer is, it sucks, but I can also get into specifics.
 
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