It's absurd that people don't realize this. It's so absurd, that I can't help but think that they do realize it; they simply choose to continue 'austerity' in relation to real people but largess in relation to corporations and the already rich. They know they can get away with it.
It appropriate balance between stimulus and relief is zero stimulus* and 100% relief.
Ideally this relief would be pretty automatic: unemployment insurance at a fixed percentage of lost remuneration becomes easier to access and last longer when unemployment is high, perhaps there should be some kind of renters'/mortgage insurance that make payments when the person is unemployed. Maybe the "employer's" portion of the wage tax that finances SS and Medicare should be suspended to discourage layoffs. Relief payments like SNAP and WIC should be easier to access when unemployment is high. But relief should not stand in the way of the long term effort to reduce the structural deficit to the level of the government's long term investments, unfortunately too near zero.
* Unless, like 2008-2020 the Fed is unwilling to provide the stimulus the economy needs at the very least not to undershoot the Fed's own inflation target.
I enjoyed the topic and presentation. Thank you.
The idea of pre-design of relief/stimulus payment program is needed in current uncertain economic conditions and divided politics.
Great stuff. Thanks again
It's absurd that people don't realize this. It's so absurd, that I can't help but think that they do realize it; they simply choose to continue 'austerity' in relation to real people but largess in relation to corporations and the already rich. They know they can get away with it.
It appropriate balance between stimulus and relief is zero stimulus* and 100% relief.
Ideally this relief would be pretty automatic: unemployment insurance at a fixed percentage of lost remuneration becomes easier to access and last longer when unemployment is high, perhaps there should be some kind of renters'/mortgage insurance that make payments when the person is unemployed. Maybe the "employer's" portion of the wage tax that finances SS and Medicare should be suspended to discourage layoffs. Relief payments like SNAP and WIC should be easier to access when unemployment is high. But relief should not stand in the way of the long term effort to reduce the structural deficit to the level of the government's long term investments, unfortunately too near zero.
* Unless, like 2008-2020 the Fed is unwilling to provide the stimulus the economy needs at the very least not to undershoot the Fed's own inflation target.