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Stimulus? Honest question follows

I’m not an economist by any stretch of the the imagination, but couldn’t we have simply propped up the economy by paying everyone’s salaries while the world is on pause? No layoffs, everyone can continue to pay their mortgages and bills, buy groceries, etc. We give those with essential jobs hazard pay while we wait this thing out. When it’s safe to restart everyone goes back to work and the economy goes right back to where it was before the crisis. If everyone’s salaries are covered, including execs and CEOs, then there is no reason to pay anyone off. Why wouldn’t this work? I don’t see how giving cash to corporations who let go of workers does anything for the economy.

Money
 
Knotwild said:
It's not really about us. Sure, it might buy some votes. But it is mainly about attaching "pork" and things we don't want to the bill because they are pretty much assured it will pass. Also, if you do some reading, you will see that it allows the big players to reap profits with no risk off of bond re-sales funded by cheap money. Nothing was fixed after 2008, they kicked the can down the road. Do a search and see how much money the fed has injected since 2008. So, their approach now is to inject some more, much more.
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This I agree with. My dad went through the depression and have i always thought it would never happen to us. Im not so sure now. It seems more like a house of cards these days.
 
MoneyWaster said:
I’m not an economist by any stretch of the the imagination, but couldn’t we have simply propped up the economy by paying everyone’s salaries while the world is on pause? No layoffs, everyone can continue to pay their mortgages and bills, buy groceries, etc. We give those with essential jobs hazard pay while we wait this thing out. When it’s safe to restart everyone goes back to work and the economy goes right back to where it was before the crisis. If everyone’s salaries are covered, including execs and CEOs, then there is no reason to pay anyone off. Why wouldn’t this work? I don’t see how giving cash to corporations who let go of workers does anything for the economy.

Money
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It would not work because of the components in the supply chain as well as corporate obligations like electric, water and gas bills, commercial rent, loans for existing capital and equipment. A lot more elements involved in running a business like bond payments, commercial paper interest and many other things. Everything is connected to everything. But, handling salary via unemployment insurance would have been the way to go.
 
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MoneyWaster said:
I’m not an economist by any stretch of the the imagination, but couldn’t we have simply propped up the economy by paying everyone’s salaries while the world is on pause? No layoffs, everyone can continue to pay their mortgages and bills, buy groceries, etc. We give those with essential jobs hazard pay while we wait this thing out. When it’s safe to restart everyone goes back to work and the economy goes right back to where it was before the crisis. If everyone’s salaries are covered, including execs and CEOs, then there is no reason to pay anyone off. Why wouldn’t this work? I don’t see how giving cash to corporations who let go of workers does anything for the economy.

Money
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That’s effectively what the bill is trying to do.

https://www.steptoe.com/en/news-publications/president-trump-signs-cares-act-into-law.html

Here is a great explanation of the law.

Now people don’t have to opine on something they don’t know anything about!! That is, if anyone bothers to read it.
 
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rjtfroggy said:
Municipal pensions are reduced up tp 66.6% because of a 1988 law from president Regan, who after firing air traffic controlers accused government employee's ( city, state, federal) of double dipping, even though we worked and we paid into the funding.
As to your last response we had 457 accounts which were pre tax. There was one thing nobody knew going in and that was the city had control over all the funds, they could if need be raid the funds to balance budgets or pay their share of the pension funds. I found out the hard way after the markets crashed and my funds were down to basically what I put in. It took almost a year and some lawyer fees to get my money out but it had to roll over to a similar type fund ( IRA or private annuity) other wise you would have to pay the tax up front.
Again Thank you pres. Regan.
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Here in Texas you work for one county for 20 years, get fully vested, then transfer to another county or city. Work there for 6 years and you're now fully vested in TWO pensions based upon 26 years EACH. If you work for a department with lot of overtime potential, you can work all the overtime you can for the last 3 years. Since the pension amount is based upon only the last 3 years income, you have the ability to double or triple your base wages, multiplied by 26 years, times two. Pretty slick! Wonder who codified that pension system?

Oregon has an even more generous and corrupt state pension system which I've linked to before.

Most of my friends who stuck out careers at UAL, got stiffed when the airlines, like every other company in America shed their pensions through bankruptcy. Thank Congress for that, and your debacle too, RJ. Today they're trying to live on about 30% of what they would've had, plus SSI. Blue collar workers who saved into pension systems all over America had their funds raided after Reagan bankrupted America chasing "Star Wars". Yea, he bankrupted the Soviet Union too, but look at who's paying for it? You are!
 
Texas10 said:
Here in Texas you work for one county for 20 years, get fully vested, then transfer to another county or city. Work there for 6 years and you're now fully vested in TWO pensions based upon 26 years EACH. If you work for a department with lot of overtime potential, you can work all the overtime you can for the last 3 years. Since the pension amount is based upon only the last 3 years income, you have the ability to double or triple your base wages, multiplied by 26 years, times two. Pretty slick! Wonder who codified that pension system?

Oregon has an even more generous and corrupt state pension system which I've linked to before.

Most of my friends who stuck out careers at UAL, got stiffed when the airlines, like every other company in America shed their pensions through bankruptcy. Thank Congress for that, and your debacle too, RJ. Today they're trying to live on about 30% of what they would've had, plus SSI. Blue collar workers who saved into pension systems all over America had their funds raided after Reagan bankrupted America chasing "Star Wars". Yea, he bankrupted the Soviet Union too, but look at who's paying for it? You are!
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Of course those public pensions were brought to you by the corrupt public employee unions and their paid off liberal Democrat politicians!

As for the other blathering in your post, as Ruth Langmore would say, “You don’t know shi@ about fu*£!”
 
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Before everyone gets all excited about free money, they should read the fine print and see if this is a free check or an advance on your 2020 tax return. Think of it as the govt giving you part of your 2020 tax return early to do a jump start on the economy. An inquiring mind might ask "well what would happen if I owe taxes in 2020? Will my tax bill now be increased by the amount of the stimulus check?
TAJ45 said:
So, when will this come to pass and how much to whom??
I know being on a fixed income leaves me out, being independently wealthy and all. Don't I wish.
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faster45432 said:
Before everyone gets all excited about free money, they should read the fine print and see if this is a free check or an advance on your 2020 tax return. Think of it as the govt giving you part of your 2020 tax return early to do a jump start on the economy. An inquiring mind might ask "well what would happen if I owe taxes in 2020? Will my tax bill now be increased by the amount of the stimulus check?
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It is a refundable credit on your 2020 Federal tax return.

See the links below for full explanation.

https://www.google.com/amp/s/www.la...ut-here-plus-other-common-questions?_amp=true

https://crsreports.congress.gov/product/pdf/IN/IN11282
 
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JimT said:
Of course those public pensions were brought to you by the corrupt public employee unions and their paid off liberal Democrat politicians!

As for the other blathering in your post, as Ruth Langmore would say, “You don’t know shi@ about fu*£!”
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To set the record straight it was not the unions that set the pension rates for employees it was the administrations in power at the time. Pension funds were paid to and under the control of the cities and states at the time and still are, it was a ponzie scheme that they could under fund and it failed.
During contract negotiations instead of giving decent wages they offered benefits like retirement amounts, lower years of service, no copay ins., and others because they (the politicians) could hide all that in their annual budgets with out the tax payer ever knowing it was there.
I was involved in some of these negotiating sessions and some of the cities proposals were absolutely unbelievable and when asked off the record how it would be payed for the answer was TAXES, and because it was when residency requirements were relaxed or done away with, workers said OK.
Lets be honest wouldn't you take the better benefits if offered to you. I think so.
 
rjtfroggy said:
To set the record straight it was not the unions that set the pension rates for employees it was the administrations in power at the time. Pension funds were paid to and under the control of the cities and states at the time and still are, it was a ponzie scheme that they could under fund and it failed.
During contract negotiations instead of giving decent wages they offered benefits like retirement amounts, lower years of service, no copay ins., and others because they (the politicians) could hide all that in their annual budgets with out the tax payer ever knowing it was there.
I was involved in some of these negotiating sessions and some of the cities proposals were absolutely unbelievable and when asked off the record how it would be payed for the answer was TAXES, and because it was when residency requirements were relaxed or done away with, workers said OK.
Lets be honest wouldn't you take the better benefits if offered to you. I think so.
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You can believe what you want, but the fact of the matter is public pension plan funding is crowding out vital funding for critical needs. Even with this funding public pension plans are on the road to ruin. The article at the link below provides a more complete picture of the situation.

https://www.google.com/amp/s/reason.com/2018/10/24/the-public-sector-pension-crisis/?amp
 
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