03-26-2020, 09:44 AM
I'm a wonk/bureaucrat, and with that comes the understanding of political realities with any public policy. I don't think this is the best policy that could have been crafted and I think there are things in it that are superfluous, but I'm optimistic about what it will mean for the economy in the short-term.
What I am pessimistic about is what will happen in the long term. There were warning signs for our economy before this happened and this isn't going to resolve all of those problems. Also, from my understanding of the payments going out, they are pre-payments of tax credits for 2020 taxes. This means that tax liabilities will be higher this time next year resulting in fewer refunds and smaller refunds. What will that do to the economy at that time when we may still be needing recovery? Will people be able to pay amounts owed? Because that happens after the election it isn't a big concern for the elected officials in Washington at the moment.
So while I am optimistic, it is a verrrrrrrrrry cautious optimism.
What I am pessimistic about is what will happen in the long term. There were warning signs for our economy before this happened and this isn't going to resolve all of those problems. Also, from my understanding of the payments going out, they are pre-payments of tax credits for 2020 taxes. This means that tax liabilities will be higher this time next year resulting in fewer refunds and smaller refunds. What will that do to the economy at that time when we may still be needing recovery? Will people be able to pay amounts owed? Because that happens after the election it isn't a big concern for the elected officials in Washington at the moment.
So while I am optimistic, it is a verrrrrrrrrry cautious optimism.
"A great democracy has got to be progressive, or it will soon cease to be either great or a democracy..." - TR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
