Again why is this 3000 per month?
As cruel as this sounds, we don't want a surplus of cash right now as supply right now is quite inelastic because of all the shutdowns, so all this would do would be causing inflation. Later on when the virus is over the law of sticky prices would keep prices generally higher for consumers. Start it with a solid first payment for a month thats and then move onto means testing payments. The first payment shouldn't be means tested as we dont have time to choose but later on we can start doing it as we wan't basically everyone to have the bare minimum to survive this pandemic but we want to avoid giving more than necessary.
I am not gonna be a super deficit hawk during emergencies but we do also need to care about the amount we spend now.
Also is the 25% reduction based on simple or compunded? Im assuming simple as compounded would technically never go away
It’s hard to see how this is inflationary when people are being put out of work due to government actions. Please explain.
