When you learned economics from AM radio: https://twitter.com/johncornyn/status/1248226161596956673
The cry against spending is always run away inflation. We’re facing *deflation* during a worldwide health crisis. None of the normal boogie men apply to this situation.
Money is currently evaporating. Even if you’re a staunch fiscal conservative, propping up demand by taking pressure off of consumers is extremely desirable.
None of the supply side arguments apply here either. Even businesses that could potentially receive money to keep people employed won’t help. That’s why at *least* 13M people have become unemployed since the PPP legislation passed.
Why would a business take a loan - even one that can be forgiven - if no one can buy their products. Manufacturing companies can’t just produce goods to warehouse for when people start shopping again.
The only thing that can keep things moving is every consumer feeling confident enough to continue paying their rent/mortgage/credit card bills, ordering delivery meals, and shopping online.
If the fear is inflation after the pandemic is over, make sure that Amazon, Capital One, Chase, etc has to pay in taxes to get any excess money out of circulation.
You can follow @Sir_Fahrenheit.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled: