Minneapolis Federal Reserve President Neel Kashkari has issued a warning stating that if the next round of stimulus for the United States economy is not approved there will be "enormous consequences". This comes on the brink of the election as President Trump has decided to shut down talks regarding the stimulus until after the election. Not supplying the American economy with stimulus will result in a more intensified downturn as workers, businesses, and governments need more cash immediately. There will be ripples that are felt through the economy once individuals cannot afford to pay their bills. The Federal Reserve has been continuously warning congress of the impact that the lack of stimulus could have. Kashkari stressed that whatever assistance is needed to anyone affected by the pandemic is important and should be delivered. The most interesting point that was stressed by Kashkari is that providing public funds to help the private sector presents no "moral hazard" as the down turn was not caused by systemic failure but by the pandemic. In conclusion, with millions of people affected by the pandemic the incorrect way of dealing with this situation is to let the people deal with it on their own.
8 comments:
It seems the good of the people has been put on the back burner in what has become a nasty election year. With so much going on, from the nomination of the next Supreme Court Justice to the unprecedented pandemic, Congress and the government have lost sight of what is needed most right now. That is support for the American people and American businesses. As you mentioned, this pandemic is the reason for the economic downturn, not necessarily the market itself. It would be in everyone's best interest if more support and stimulus for the American people could be agreed upon.
I agree completely with Jack. Somehow, demonizing and admonishing the opposing political party has become more important that providing relief to Americans. The issue of the virus should be a bipartisan one, and not used as a political tool to gain votes.
I think it is pretty unfortunate that "leaders" of the country have made this issue more political than it needs to be. These checks are about people's livelihood and for some literal survival. Many low-income families are affected by the pandemic and there are studies (which I mentioned in my article by the way) that prove that the second round of stimulus checks would be greatly beneficial to provide relief to millions of Americans and businesses but also to boost up efficiency and promote spending. In this case, I tend to think that more stimulus checks are very much needed.
It is truly disappointing that the good of some people has been put behind the political agendas of leaders. Another stimulus could be very helpful to the American economy because there are certain families and individuals that truly need access to funds right now. I'd also like to see some government support for small business rather than bailing out big corporations. There have been many small businesses that are struggling and even going under that could use the help of the government to remain running.
It is hard to believe any stimulus deal will be reached before the election even though I think it is desperately needed now. The political sides are clashing right now and I personally think they are waiting to see who has the presidential power, whether there is a change or not. The question is how deep can we dig the hole and it becomes more difficult to get out of? I definitely agree with Chase that there should be government support for small businesses because they are the ones truly struggling.
Most of you have raised valid points. The urgency of a stimulus is being undermined by the upcoming elections. Both sides are more focused on winning the election rather than caring about what the people need. I do believe that a consensus on the stimulus is not possible and we will have to wait until after the election to get a new stimulus approved.
This is something very serious that the government needs to realize, and the consequences it would lead to. Personally, if we put ourselves in the position of the people who are in need of assistance, we will realize how important we are to the government. If they really want to win the election, no matter which party it is, they need to put their selves in the people's position and then they will realize the true struggle of the people. But, everything aside, I think it is important that they should get the stimulus check to the people before the election not just for their personal goals but actually to help the people here this time.
I agree with Nicole that stimulus checks are needed now and it's a shame that we will likely not hear about them again until after the election is over. Each political party is holding out until the very end, hoping that they win.
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