JWeinCom said:
Rab said:
House Passes $2k Stimulus Checks, now it's going to the Senate were it would normally die, but Bernie Sanders has threatened to hold the Senate in session through the holidays by blocking the Defence bill if the $2k Stimulus is not passed, this actually has a chance thanks to some tenacious politicking
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I really don't know how I feel about this. I don't like holding one program in hostage for another... although I guess that's how politics.
Also wondering the long term ramifications of these kinds of stimulus bills. Direct payments seem to work better than industry bailouts, but I don't know how they work in the long run. Would love it if someone with more knowledge on economics could address this.
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I'm no economist (not that economists even agree with each other), this stimulus package is an emergency pay out for those suffering the most, it's not usually a long term occurrence
It is known that those less fortunate tend to spend any handouts they get very fast, supporting local business and employment in the process, the wealthier tend to save it as they don't immediately need it, this process is known as the "Velocity of Money" how quickly money is moved through the economy
The bottom up/flood up stimulus pay out mostly to the poor have a greater economic impact/velocity on everyday business and employment than top down/trickle down pay outs to corps and the wealthy
I would say that pay outs to the financially struggling can really help the economy and benefit the ones that need it the most immediately
Last edited by Rab - on 28 December 2020