Stimulus Bill , ok, but who will pay the Bill

[Lakewood90712]

Rushing to pass a stimulus bill, ok I understand , and agree with some of it. As usual , no end game,

how will it be paid for ? , increase cap. gains and corporate tax rate ?

Yes I know, ugly thoughts, but we still have trillions of debt fron the last resession stimulus.

We just cant continue without a way to pay the bill.

 

[Gumby]

Silly rabbit. Trix are for kids. The same people will be paying for this as pay for everything else. You, me, your neighbor, my neighbor and all the rest of the people we know. A few privileged and well-connected people will hoover up a lot of government cash, but most people will pay. The mechanism may be as yet unknown, but the end result isn't.

 

[RetireAge50]

Most likely nobody will ever pay the bill. Directly at least, inflation coming later on.

 

[H2ODude]

Clearly deficits no longer matter based on recent tax cuts.

 

[Ian S]

As long as the economy is in recession which it almost certainly is and will be for some time, the government can print money with little or no adverse effect certainly compared to letting the economy collapse. This is because we have a fiat currency and only ever print and/or owe USDs. Thank heavens we're not on the gold standard anymore!

 

[Dtail]

Most likely nobody will ever pay the bill. Directly at least, inflation coming later on.

Related to inflation, in the end doesn't one's personal inflation count vs. the CPI?
i.e. perhaps a little official inflation could be good for raising CD rates to lock in for these times even if the real rate is zero.

 

[ransil]

They give it now and take it back next tax season

 

[aja8888]

Hey, think of the cash as like getting your own money back ahead of paying for it!

 

[LOL!]

A trillion dollars was given away last year. I think I got some of it since my portfolio went up by almost 7 figures. Unfortunately, it looks like I had to give it back this month.

 

[jim584672]

Put it on the credit card. The American way.

 

[Starsky]

Rushing to pass a stimulus bill, ok I understand , and agree with some of it. As usual , no end game,

how will it be paid for ? , increase cap. gains and corporate tax rate ?

Yes I know, ugly thoughts, but we still have trillions of debt fron the last resession stimulus.

We just cant continue without a way to pay the bill.

Sure we can. Why stop here? There's no fear in tanking the banking system like in the last recession. This is a health crisis, not a banking one, and the government has the power to print and raise as much money as it needs. Thanks go to our status as the world's currency of choice. If we attacked Iran, we'd spend - literally blow up in smoke - the same money. At lease this money stays in the economy. Why is one so much more plausible than the other?

At least the government will collect billions in capital gains taxes as the market recovers, and probably will make corporations pay a minimum tax as well. (Maybe a fee on stock transactions?) We'll need it.

 

[Amethyst]

We will pay, in the form of higher taxes, and our children and grandchildren (who are already looking at future climate change bills) will pay.

It ain't easy having a society.

Rushing to pass a stimulus bill, ok I understand , and agree with some of it. As usual , no end game,

how will it be paid for ? , increase cap. gains and corporate tax rate ?

Yes I know, ugly thoughts, but we still have trillions of debt fron the last resession stimulus.

We just cant continue without a way to pay the bill.

 

[JDARNELL]

Does it really matter who pays or if it will ever be repaid? I think it’s all relative with other countries. The reality is everyone is in the same boat. No doubt people who have lesser flexibility will be impacted the most.

 

[Beststash]

Just pushing the debt forward to younger Americans and future generations. Future generations would likely have lower incomes than their parents and see less economic opportunity throughout their lives.

I got mine - [mod edit]

 

[Fermion]

Hey, the future generations wouldn't exist without us. They are getting their I-phone 27 with 15G wireless, so let them be happy about that.

 

[aiken]

We will pay via hyper inflation.

 

[ejman]

Rushing to pass a stimulus bill, ok I understand , and agree with some of it. As usual , no end game,

how will it be paid for ? , increase cap. gains and corporate tax rate ?

Yes I know, ugly thoughts, but we still have trillions of debt fron the last resession stimulus.

We just cant continue without a way to pay the bill.

The payment method has been perfected over time by multiple governments - Wiemar Germany, Argentina, Brazil et al- - crank up the printing press! The Fed has a magic machine that can print unlimited amounts of currency as needed. The big question is how this will impact the inflation rate. The prior crank up in 2008-2009 did not result in a significant amount of inflation to the surprise of many including myself. Will this episode have the same result? who knows? stay tuned.

 

[Amethyst]

Well, we're still paying for the Vietnam war, which was started and continued by the generation(s) before mine. So it's just continuing a tradition!

Hey, the future generations wouldn't exist without us. They are getting their I-phone 27 with 15G wireless, so let them be happy about that.

 

[Mdlerth]

Elect Beststash in 2020! Progress is his middle name!

Just pushing the debt forward to younger Americans and future generations. Future generations would likely have lower incomes than their parents and see less economic opportunity throughout their lives.

I got mine -[mod edit]

I don't disagree, nor do I believe we should behave so irresponsibly. However, I look at the future more optimistically.

Will our grandchildren inherit a gigantic, fly-encrusted, stench-ridden, steaming pile of debt? No doubt. Will their grandchildren do likewise? The smart money says yes.

But their lives also probably will be much better than ours in so many ways I can't know them all. Just as ours are better than our ancestors. Even the richest today could not afford to build Versailles, but even the poor in 21st century America have comforts that Louis XIV could not imagine.

I think the last time the USA didn't have a national debt was during the Jackson administration - yeah, the guy on the $20 bill. Somehow society has survived.

Could we leave subsequent generations even better off by not encumbering them with our unpaid bills? Sure! Run for Congress. I'll vote for you!

 

[target2019]

Three-card Monte, DC-style!

 

[RetiredAt55.5]

This is one time I'm ok with raiding the piggy bank.

The house is burning down, we have to put out the fire.

What are our other choices? Risk a complete economic meltdown that could last for years? What would that end up costing us?

20% or more unemployment means a lot less revenue and all the unemployment funds would get exhausted. Then what?

Not to mention a lot less money going into the SSA coffers but the same amount coming out. That 2034 date would have to be moved up for sure.

I will say that giving loans to big businesses sounds good to me, rather than no strings attached money.

 

[Amethyst]

Everyone wants to talk about Congress, but nobody wants to do anything about it (e.g. run for Congress). (Disclaimer: I sure don't!)

Could we leave subsequent generations even better off by not encumbering them with our unpaid bills? Sure! Run for Congress. I'll vote for you!

 

[Lakewood90712]

This is one time I'm ok with raiding the piggy bank.

The house is burning down, we have to put out the fire.

What are our other choices? Risk a complete economic meltdown that could last for years? What would that end up costing us?

20% or more unemployment means a lot less revenue and all the unemployment funds would get exhausted. Then what?

Not to mention a lot less money going into the SSA coffers but the same amount coming out. That 2034 date would have to be moved up for sure.

I will say that giving loans to big businesses sounds good to me, rather than no strings attached money.

There is no piggy bank to raid. We are still saddled with significant debt from unemployment extension from the last economic meltdown. Those bailouts did not stop people from loosing their jobs then. When does the buck stop. Strong banks and companies survived dozens of recessions, and a depression. These firms who chose to operate on leverage need be allowed to fail. If their assets were of value , they will be bought up. If those assets were of dubious value , straight to the junkyard. Many equity positions will be wiped out. But remember what many advisers say, " It's only a paper loss " , essential business will go on.

 

[RetiredAt55.5]

To me, this seems worse and more far reaching, than the last economic crisis.

 

[Dtail]

To me, this seems worse and more far reaching, than the last economic crisis.

Well that's the question.
50% down possibly or will it go to 70-80% down?