Friday, January 7, 2022

Free money

There are complaints that the Covid money is not being spent to fight Covid but on peripheral issues. It started with the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act of 2000 and the nearly $900 billion stimulus included in the Consolidated Appropriations Act of 2021. Most recently the $1.9 trillion American American Rescue Plan was signed into law. Putting all this money into categories gives an idea of what went where. Direct payments $861 billion Unemployment $594 billion Small business $756 billion Community development $379 billion Transportation $159 billion Schools $289 billion\ Rent assistance $63 billion Nutrition and agriculture $73 billion Post office $20 billion Child care $55 billion Broadband $39 billion Covid relief fund $150 billion Employee retention $55 billion The government is now proposing Build Back Better at a real cost of $5 trillion and much of this will once again be direct payments to the people. Can the government just keep creating new money and sending checks to the people and if not what is the down side.

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