Saturday, March 28, 2020


Mitch McConnell always sounds like he's grumbling, so it's hard to say just how he feels about the largest welfare program in American history.  Apparently, though, he agrees that it's necessary.  Now that McConnell has broken the ice, only a few stubborn holdouts still say "stimulus" — the word du jour is "relief."  Add the restraints on the Administration's ability to dole out corporate loans, and restraints on how that loan money can be used, and the overall tone of the bill is classic Welfare State Democratic.

Progressive Democrats wanted more, of course, but Pelosi is offering some proposals for "phase four" that might offer them more satisfaction.  If, somehow, science turns out to be right and Tr*mp turns out to be wrong (imagine that!), "phase four" will be along in short order.

How will the USofA pay for the bills it's running up at the moment?  Essentially, it won't.  The Fed is gearing up to increase the money supply with extensive, near-zero interest loans to the Treasury. It will be inflationary, but that makes the biggest losers the ones with the most money.  The Fed hasn't met its inflation target since the Great Recession, so you could say there's some catching-up to do.

By the way, I really like the idea of some workers collecting more in unemployment insurance than they earned in salary: clearly, they're people who weren't making nearly enough money to begin with.

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