The Fed bailouts I understand

    Posted by ssaffer on 3rd of May 2020 at 02:21 pm

    The Fed bailouts I understand are necessary at this moment.  There are many problems going forward tho.  This will sap GDP for a long time (ex.  Japan).  The unemployment situation needs to be amended.   This weekend I was at a grocery store and the clerk (male in his 30's) started chatting with me.  Asking me if I got my bailout check.  I said I had not, I do not qualify and that if I did I would send it back so that someone who really needs it can have it.   He then told me he had been laid off as an electrician and took this job as a grocery clerk to support his family.  I commended him for that and that is the type of mentality that i was raised by (to work hard and never always do what is necessary to provide for yourself and family).   He then told me that the woman that was before me, was happy that she is now getting $600/week from the government and doesn't have to work her 'crappy' part time job.  He was stunned that this woman who worked part time is making more than him a week and doesn't even have to work.    Something is very wrong here.   This guy is doing the right thing and working in a place that exposes him to people who could be carrying Covid-19, get sick and get his family sick.    There is no way that this should be ok.   I have friends who own small businesses and they finally a loan to help with payroll for four weeks and they can not get their workers to come back to work and in order for them to keep the loan the agreement is to have full employment.  They can not hire illegal people either because it has to be all on the books.   This is going to be a big problem.  70% of GDP from small business in this country.   We are fostering generations that are addicted to "bailouts".   This country needs to figure out how to reward those that are working, especially in high risk jobs that exposes them to Covid-19 (grocery stores, etc..).   We can not applaud people that chose to not work when it is available now.  I was raised to work hard, take any job to support yourself and not to rely on the government.    

    So True

    Posted by iaranger on 4th of May 2020 at 11:53 am

    So True

    I agree with your sentiment,

    Posted by RichieD on 3rd of May 2020 at 05:45 pm

    I agree with your sentiment, but the woman in line before you isn't the real problem.  Let's first address the biggest outrages in front of us: corporations and banks being bailed out.  Back in 2008 when Goldman Sachs was on the ropes, the federal government stepped in with $10 billion  and bailed them out.   Feds didn't even insist on a % interest in future profits in exchange for the risk they were taking on.  All downside risk without any upside other than the possibility the funds would be paid back.  Goldman were not the only ones, and I suspect much the same is happening once again.  With that backdrop, it's hard to get worked up about people taking advantage of the $600 subsidy.

    Agree.  You have to look

    Posted by ssaffer on 3rd of May 2020 at 10:52 pm

    Agree.  You have to look at who was leading the Fed at the time all ex-Goldman employees.   Anyway.  If you cannot get people to work in grocery stores, etc... We will not be able to get essentials.   That's a problem. 

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