US Financial Stimulus for Citizens

replied on 17/03/2020 19:06

Posted on 17/03/2020 19:06

Details are still sketchy at present, but it appears that the US Government is proposing to issue individual cheques to its citizens for USD1,000 [or more!] to encourage a consumer driven boost to the US economy to offset the potential for recession because of the Coronavirus pandemic. It appears to be a variation of the Universal Income format, but using a single payment instead of a regular distribution and both variants have been mooted elsewhere as counters to economic downturns.

I can see that the spending boost will benefit the US economy, and that a decent chunk of the money would have to be distributed anyway to providing basic welfare support during the Coronavirus crisis. What I can't see at present is how, with shops and online distribution closing down in response to social isolation needs, and employees being laid off or sidelined with the infection, the purchasing activity can actually happen. Any thoughts, and should UK launch a similar programme?

Steve

17 replies

Wherenext replied on 19/03/2020 18:15

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Wherenext

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Posted on 19/03/2020 18:15

In the good old days it wasn't called a Financial Stimulus it was just called a Bribe.

Takethedogalong replied on 19/03/2020 21:22

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Takethedogalong

Posted on 18/03/2020 14:20 by

It's not a political decision; it is an economics decision, made on the direction of the President, and is designed to boost economic activity in order to limit the Coronavirus associated damage to the US Economy.

The 'cash injection' is based on saving jobs, GDP, essential services and overall wealth which is why it's going to be a huge amount of borrowing, tipped to be more than the equivalent during the 2008 Financial Crisis. Too little will not reassure the markets ...

Demand for US Dollars has risen significantly today, whilst Sterling has tumbled against both the Dollar and the Euro, the value against the former at its lowest for almost 35 years. This has been attributed, in part, to the UK's financial support for its economy not to have been brave enough in its 'bold initiative'.

Steve

Posted on 19/03/2020 21:22

You have misunderstood my post Steve. I was saying this thread is political, I wasn’t commenting on what had been done.

Tinwheeler replied on 19/03/2020 21:42

Tinwheeler

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Posted on 19/03/2020 21:22 by Takethedogalong

You have misunderstood my post Steve. I was saying this thread is political, I wasn’t commenting on what had been done.

Posted on 19/03/2020 21:42

As was I with a nod to the T&Cs.

1 person likes this

replied on 20/03/2020 13:23

Posted on 20/03/2020 13:23

Thanks for the clarification, TDA & TW.

My post was made purely from the economics aspect and the need to support economic activity to preserve jobs, living standards etc. Because that is what helps finance the shiny new caravans and the breaks therein!

Steve

DavidKlyne replied on 20/03/2020 22:18

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DavidKlyne

Motorhomer

Posted on 20/03/2020 13:23 by

Thanks for the clarification, TDA & TW.

My post was made purely from the economics aspect and the need to support economic activity to preserve jobs, living standards etc. Because that is what helps finance the shiny new caravans and the breaks therein!

Steve

Posted on 20/03/2020 22:18

Steve

I don't see anything wrong with your post as far as the T&C's are concerned. The point about political subjects is that lead to disagreements because people become partisan which leads to arguments. I saw your post as purely as a factual analysis of the current situation if that helps.

David

Tinwheeler replied on 20/03/2020 22:46

Tinwheeler

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Posted on 20/03/2020 22:46

Tbh, David, I expected Steve's question about the launch of a program in the UK to lead to mayhem. I was wrong, it didn't. All credit to the posters who contributed.👍🏻

Twos more then one replied on 21/03/2020 10:24

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Twos more then one

Caravanner

Posted on 20/03/2020 22:18 by DavidKlyne

Steve

I don't see anything wrong with your post as far as the T&C's are concerned. The point about political subjects is that lead to disagreements because people become partisan which leads to arguments. I saw your post as purely as a factual analysis of the current situation if that helps.

David

Posted on 21/03/2020 10:24

I agree

This is a governmental response to the virus. As the Democrats have supported the measures, and not opposed, it is not political

There is a difference between a political, and a governments response