We should "deduct" the amount of that to be spent on infrastructure, if for no other reason than you're ok with it. Also need to consider where the money is going. To working class people who will spend it immediately and in full, or to the equity side of companies making stock buybacks. Account for the revenue increase that results from the reversal of the Trump tax cuts on corporations. The maturity of the longer-term bonds government issues, inflation can be expected to devalue that debt. Finally, negative real interest rates on short-term debt. The $2 trillion looks quite a bit smaller now, I think.
Goldman Sachs nudges U.S. growth forecast higher on Biden stimulus plan https://www.reuters.com/article/us-usa-economy-gdp-goldman-idUSKBN29L0QW Analysts at Goldman Sachs Group raised their U.S. growth forecast for the second time this month on expectations that President-elect Joe Biden’s fiscal stimulus plan will hasten the economy’s recovery from the COVID-19 pandemic. The bank expects economic growth of 6.6% in 2021, compared with a previous forecast of 6.4%, according to a report published on Saturday. It also raised forecasts for how much stimulus the new administration will be able to push through in the near-term, to $1.1 trillion from $750 billion. Biden outlined a $1.9 trillion stimulus package proposal on Thursday, saying bold investment was needed to jump-start the economy and accelerate the distribution of vaccines to bring the coronavirus under control. “Larger boosts to disposable income and government spending imply stronger growth later in the year,” the bank’s analysts wrote.
So what did Trump ultimately achieve as President anyways ? He promised to deal with the international trade deficit ( a dubious goal ) and failed; your trade deficit went up to record levels. Taxpayers also had to heavily subsidize farmers ( and others ) who lost business due to largely unnecessary trade wars. He promised some grandiose wall with Mexico that they would pay for and beyond a few kilometers basically just replaced some old wall with new wall and never got the wall completed. Plus Mexico didn't pay a cent on it. He presided over 400,000 dead due to Covid and claimed it would be maybe a few dozen people dead then fade away. Leaving office with probably the worst outcome in the Covid sphere beyond perhaps Brazil. He destroyed many American's faith in democracy by manufacturing a fake "Election Fraud" conspiracy theory rather then accept a legit democratic vote. A move most banana republic fascists would applaud and say well done sir. Led to a mob attacking Capital Hill on his instructions ( several participants have said they acted on his invitation ). He failed to address the US health care system as promised; instead, leaving it in crisis trying to deal with Covid. Those who claim it's an exceptional system, your Covid experience says otherwise. Unless you can get upper tier private service like Trump when he got Covid. He ratcheted up racial tensions and encouraged white supremist groups despite the FBI warning that far right extremist groups were the biggest danger to your nation. He claimed to be "draining the swamp" but just created an even worse version of the swamp filled with grifting family members, hangers on, and some of the least capable politicians to ever see office. He even fired a bunch of them and replaced them with more of the same ( guys like Atlas ). He built up a giant government deficit even before Covid hit, and there is no evidence that it was a well directed use of money. Most economists say late cycle strong economies are a time to reduce deficits not increase them. You know, to save for a rainy day like ... Covid. So much winning. Congrats to all Americans on your lower taxes ( right ? ); hopefully Trump delivered a huge drop because get ready for the hikes coming nothing Trump did was sustainable ( see federal deficit ). So as Biden proceeds out of crisis, maybe cut him a break and remember what he was handed. There is no doubt he'll do better then Trump; almost anyone could do better then Trump. I don't want to see a lot of whining when everything's not fixed overnight; it can't be. Remember, some of you said all this shit was all worth it because you got some Supreme Court judges. That's your trade off ( highly irrational imo but whatever floats your boat ). And for those who thought there was "Election Fraud" and the packed Supreme Court would save the day, you got punked by Trump in every which way possible.
What amazes me is Canada got this done in March/April, and you guys are still debating details and how to administer it. Canadian relief went to people with proven income drops due to Covid, with some clawbacks now if people didn't really qualify. I'm sure it wasn't perfect but none of these bipartisan debates and extended delays occurred.
Hah. Ok, lets do that. Spending on infrastructure is probably the best spending we've suggested thus far. If we've got to spend, lets do this. many people getting stimulus don't need it and it WILL go to share prices or Robinhood accounts. If you're unemployed or below 40 hours a week, you should get a stimulus check. If you're not, you shouldn't. Account for money before you get it? Not wise. Corporations may, and probably will, take other action to protect their earnings within the nature of the massive holes of the tax code. I know we will. As well as the purchasing power of the dollar. You can't talk about inflation devaluing the debt and then switch to real interest rates when it suits you. Interest is paid on actual, nominal interest rates - and that will mean outflows. Unless you are aware of US government debt currently yielding negative nominal rates that I am not. No, its still quite large.
Sure I can. Based on the different impact of short-term and long-term inflation. Even a small rate of inflation applied over decades makes a big difference. Over 30 days? Not so much.
If that's true then what money did they use to make stock buybacks? They used money they would have given to the federal government.