{"id":1003,"date":"2021-03-03T10:55:29","date_gmt":"2021-03-03T16:55:29","guid":{"rendered":"https:\/\/www.tameri.com\/wordpress\/almostclassical\/?p=1003"},"modified":"2025-01-09T22:07:38","modified_gmt":"2025-01-10T04:07:38","slug":"13-trillion-and-counting-debt-stimulus-and-covid-19","status":"publish","type":"post","link":"https:\/\/www.tameri.com\/almostclassical\/2021\/03\/03\/13-trillion-and-counting-debt-stimulus-and-covid-19\/","title":{"rendered":"$13 Trillion and Counting: Debt, Stimulus, and COVID-19"},"content":{"rendered":"

Since the start of the novel coronavirus, COVID-19, pandemic, the United States federal government has allocated $1 trillion through administrative actions, $4.1 trillion through legislative action, and nearly $6 trillion via the Federal Reserve stimulus measures. And, within days or weeks, Pres. Biden will sign legislation approving another $1.9 trillion in emergency spending.<\/p>\n

That\u2019s $13 trillion in federal economic actions<\/strong>, direct and indirect, including tax cuts and other lost revenues that added to the national debt by increasing the budget deficits.<\/p>\n

Add the losses experienced by states and COVID-19 costs approach $15 trillion so far.<\/p>\n

The Gross Domestic Product for the United States hovers around $20 trillion. The pandemic\u2019s costs might exceed GDP in 2021.<\/p>\n

Yes, we must and should help people. There must be a social safety net, which is why I support an inflation-indexed universal basic income<\/strong> (UBI) instead of a myriad of federal programs.<\/p>\n

Sadly, less than half of the expenditures and forgone revenues have directly or indirectly helped individuals, families, or small businesses. In fact, some studies suggest between 10 to 20 percent of the spending and deferred revenues benefited those most in need during the pandemic.<\/p>\n

The $5 trillion (or more) in spending represents nearly $15,000 per legal resident of the United States.<\/strong><\/p>\n

I\u2019m not against spending during an emergency. I\u2019m not opposed, in principle, to repairing and maintaining our infrastructure. But the COVID-19 relief should be targeted to aid individuals, families, and small businesses in need.<\/p>\n

Debt service costs money, diverting funds from other needs. We already pay as much on the debt serving as the entire military budget.<\/a><\/p>\n

If we, as a nation, agree that deficit spending is needed right now, spending wisely should be a priority.<\/p>\n

My family is not in need. We\u2019re not facing significant hardship. Yet, we received money. Honestly, I do not know how much we have received. Any was more than we needed.<\/p>\n

At the end of December 2020, our family received $2400 from the United States Treasury as part of the COVID-19 aid and stimulus package signed by Pres. Donald Trump. We\u2019ll receive another $5000 or more, assuming the $1.9 trillion bill is largely unchanged before it becomes law. It\u2019s not that I don\u2019t like \u201cfree\u201d money, but this isn\u2019t free.<\/p>\n

Obviously, a classical liberal isn\u2019t thrilled with such largess. We promise to do our patriotic duty and invest the funds into educational benefits for our children. Yes, this will surely expand the opportunity gap and increase revenues for Apple, yet this seems to be what everyone wants: barely means-tested government supports for families during this pandemic emergency.<\/p>\n

Our family will also continue to donate to reputable charities and the local food banks, those local organizations and people doing what government should be doing: targeting aid to those most in need of a social safety net.<\/p>\n

Supporting limited, focused government doesn\u2019t mean opposing all social welfare programs. Unemployment in the time of a pandemic surely counts as a national economic emergency. Pandemics justify government responses at local, state, and federal levels.<\/p>\n

We are not in need. The money helps, yes, but it helps us with what are arguably luxuries like a new computer for our daughters and some home improvement projects.<\/p>\n

More federal money is likely on the way. My wife suggested we put it towards our landscaping and home improvement projects. Yes, we\u2019ll be helping the local economy. It still seems odd to me.<\/p>\n

There are people being evicted from their housing. There are families struggling to buy food. Those of the families our leaders should be helping.<\/p>\n

A universal basic income<\/strong> should be among the results of this pandemic experience. A single, simple safety net that lets individuals and families spend that support money as they need.<\/p>\n","protected":false},"excerpt":{"rendered":"

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