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Stimulus Package Isn’t Free Money

Stimulus Package Isn’t Free Money

Politicians in Washington, D.C. are currently arguing about how to best salvage the US economy. The Senate unanimously passed an economic stimulus package aimed at boosting individuals and companies most affected by the coronavirus closures, and the House is expected (as of this writing) to likewise pass it. Prior to this writing, President Trump said he would sign it into law.

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The package includes direct payments to individuals. Each single taxpayer making less than $75,000 annually is eligible to receive $1,200. Married couples making less than $150,000 annually are eligible for $2,400, and $500 will be issued for each child.

Workers will undoubtedly be glad to receive the funds. Many people were unexpectedly let go or lost their wages temporarily in the widespread business closures that followed the spread of Covid-19. The stock market suffered a massive downtown that brought fears of another Great Depression. A global recession is certain to occur, but nobody knows exactly how bad it will be, as we haven’t yet experienced the full effects of this global pandemic.

A common method to staunch the cash flow when a national economy is hemorrhaging dollars is for the federal government to directly inject money. Right now, our national debt is the highest in the world at $22 trillion. The economic stimulus plan will add another $2 trillion. This is in addition to the $1 trillion that the federal government already planned to borrow for routine spending in 2020.

The government acquires debt either by borrowing against its own programs, such as Social Security, or selling bonds to foreign investors. Congress hopes the economy will grow faster than the debt, and that bond owners don’t all cash in at once. With so much outstanding debt and no clear plan for how to repay it, can we keep digging ourselves into an even deeper financial hole and still retain our position as a world power?

Politicians are gravely jeopardizing America as we know it by shutting down the economy and continuing to borrow heavily, both as modus operandi and in times of crisis. Right now, people are suffering financially. All across America, businesses were shut down overnight. Paychecks were immediately canceled with no definite return date. Countless jobs will be forever lost due to the massive closures associated with Covid-19.

We all need money to pay our mortgages, buy groceries, fill up our gas tanks, keep the lights on, and more. The stimulus checks will go to grateful citizens and help save important industries that suffered crippling blows. Airlines, restaurants, and hotels will benefit from bailouts. Nobody who lost money in the stock market, including those who held retirement accounts, will receive financial assistance from the feds. Direct payment recipients will gratefully spend their checks and revive our economy at least a little bit, but this isn’t free money.

It’s more money that we collectively owe to someone else. We now owe the money to future generations, who will have to figure out how to continue Social Security payments with yet another debt leveraged against that account. We owe foreign investors even more than before. Right now, China and Japan holds most of America’s outstanding foreign debt.

$1,200, or even $3,400 for a family of four, will go fast in the absence of a regular paycheck. It’s a small sum that will add immensely to the national debt. When this pandemic is over, we will be a nation of survivors even more burdened by both personal and national debt.

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15 Comments

  1. william

    Wait till next year,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, tax time.. this is an income,, and will be taxed as such.. Unemployment is taxed thanks to reagan..

    Reply
    • marco mack

      The government said that the payments to individuals are NOT taxable. Where did you get your information?

      Reply
    • Cathy E BRUNTON

      Not only is it taxed it is a tax credit that we are receiving early. So your next year’s refund will be $1200 less.

      Reply
    • Jim W

      The answer is to send in “estimated tax.”

      Reply
  2. Melanie Howard

    We have given money to Countries who hate us… That should have stopped years ago when owe debt doubled.., The irresponsible Politicians who were skimming or padding pockets with the money did not stop it because it was very fruitful to their bank accounts.., Politicians have been rich off of us for years.., Apparently all the money given to Countries has no accountability … I read this year one Country bought fancy cars for the Government… I feel sure when that program started the intent was to help the poor which is not happening.,, To my point stop helping all these other Nations and take care of our own.., Thank God Trump is President and has so much knowledge about
    Business and contacts to help… I am proud of our Country to help it’s own … Stop the bleed to foreign Countries will help re- coop this .., Trump is amazing and I thank God is is at the Political helm…

    Reply
  3. Melanie Howard

    Stop sending money to foreign countries…
    Take care of America .,? This is not a bad thing..
    When you look at the big picture helping Americans beats throwing us into a depression.
    Democrats it is our money for Americans..,
    Quit the useless Giving away money to foreigners and take care of the Counry..,
    Just stopping that bleed will help… please remember this is AMERICA.,, You seen to have forgotten who you represent.., Get back on track for America or go live elsewhere

    Reply
  4. melanie howard

    Take care of America and American.
    Remember who you are suppose to represent .,
    Stop all currency to foreign Countries who hate us.. It is time to remember who you work for or retire

    Reply
  5. Craig Michael Vandertie

    It should be free and a much more should be going to United States citizens who rely solely on Social Security and Disability Entitlement benefits, I myself make a paltry $875.78 per months and surviving as long as I have without having to resort moving into a Homeless shelter is beyond me.

    Reply
    • Jerry

      And again the bastards robbed from social security! Ya dont see them take it out of the retirement fund for congress

      Reply
    • Artie65

      ……and that ‘paltry’ amount after a lifetime of working and pumping your hard-earned $$$ into YOUR savings account. Ahhh, the government lie of Social Security……

      Reply
  6. christine bengston

    I am infuriated that Pelosi added all her pet projects and $25 MILLION for Congress salaries and expenses! It is selfish and extravagant when so many can barely afford food (some may be on welfare). It is such a shame for her to borrow from Social Security for all her pet projects! I think every dollar of the bill should have gone to help those Americans who lost jobs and businesses who are keeping employees on payroll even while they are losing money and in some cases closed temporarily. Just shows that they are not voting for our benefit but theirs! We need to vote for term limits on ALL public officials!!!!

    Reply
  7. Jerry

    At this point every person 18 and above owes 96000 for the debt of the US, the rescue bill costs every person 18 and above 8000 dollars just to get 1200, look at it this way would you borrow 1200 dollars knowing you have to pay back 8000? This bill is full of unnecessary things! 99 million additional to the energy dept, 60 million additional to nasa, 75 million to the national foundation for the arts, 25 million to the kennedy center! Plus much more to similar programs, it provides 100% pay for those that are on unemployment plus 600 additional per week, what an incentive to drive up unemployment and keep high levels of unemployment! Who would want to go back to work and take a pay cut? Why would the democrats want to keep the unemployment high? Of course to make Trump look bad

    Reply
  8. (Rev.) Kenneth Howes

    It’s not free money; it will indeed have to be paid for; but we had to do it. Failure to do so was going to mean 1931 all over again. It’s true that much of the load of repaying this will eventually fall on our children and grandchildren–but those children and grandchildren are being fed and housed with this money. They will probably not have to look back on their childhood as my father had to look back on his–losing the family home, having corn flakes for dinner and drinking “Cambrit tea” –hot water with a little milk and sugar in it. I have a daughter who has been laid off from her job and whose husband has left her with two boys, not paying a penny in support so far. A combination of help from us (my wife and I are a retired nurse and a retired Lutheran pastor, and we have dug deeper than is comfortable to do this) and whatever unemployment and other help through this bill comes her way mean that our grandsons have warm clothes, a warm house and decent food to eat. Ultimately the chief beneficiaries of this are the ones on whose heads much of the cost will fall–that much of the cost as they cannot in their turn kick down the road. This was the right thing to do, though it will indeed have costs.

    Reply
  9. Noreen Cregg

    It is time to take care of our own people and stop sending our hard-earned money overseas to people who hate us. They need to change things in their own countries.
    So I agree that we should give it to our own. The things that were attached to this bill are ludicrous in a time like this. Where is the common sense in some of the things they want to give money to.

    It is time to vote Pelosi out of office, a truly wicked woman who does not really care about what is right for America. Her hate for trump has almost caused an insanity. She has wasted billions of our dollars pursuing this hate for personal reasons.

    Reply
  10. Judy Ann Sarantakes

    We must get rid of Pelosi.She is a hateful person! She is also selfish, childish and a wicked woman and an insult to all women!

    Reply

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