Proposed Bill Would Give Americans $2,000 A Month Until Economy Recovers

[figmentofmyass]

more helicopter money on the way?! everybody over age 16 would get $2k/month, no questions asked:

Washington, DC – Today, Representatives Ro Khanna (CA-17) and Tim Ryan (OH-13) introduced the Emergency Money for the People Act to provide additional cash payments for hard-working Americans who have been impacted by the COVID-19 pandemic. While the CARES Act was an important first step, its one-time payment does not provide nearly enough support for American families.

The Emergency Money for the People Act expands relief to more Americans and includes a $2,000 monthly payment to every qualifying American over the age of 16 for up to 12 months. It also fixes a bug in the CARES Act to ensure college students and adults with disabilities can still receive the payments even if claimed as a dependent. The Emergency Money for the People Act additionally recognizes that not everyone has a bank or a home address to receive a check –  so it allows individuals to get this money through direct deposit, check, pre-paid debit card, or mobile money platforms such as Venmo, Zelle, or PayPal.

Under the Emergency Money for the People Act, monthly cash assistance payments would be guaranteed for at least six months and would renew for another six months unless the employment-to-population ratio for people ages 16 and older returns to the pre-covid crisis employment level of 60%. These payments would not count as income in order to protect eligibility for any of the income-based state or federal government assistance programs.

Reps. Khanna and Ryan proposed the first cash infusion plan a month ago, which the Administration and Senate Republicans embraced, and was passed into law with the CARES Act. But as a record-number of Americans have filed for unemployment in the past weeks, it’s clear a one-time payment will not be remotely sufficient. In some places, this doesn’t even cover a month’s rent.

https://khanna.house.gov/media/press-releases/release-representatives-ro-khanna-and-tim-ryan-introduce-legislation-send

could this pass? 17 co-sponsors and counting. i never thought UBI would be on the table so soon, but with the economy on the verge of collapse, unemployment skyrocketing, social unrest around the corner.....it doesn't seem impossible anymore.

thoughts? what are the limits of money printing?

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[avikz]

We are seeing an exceptional time at this moment. Where all people are under lockdown and industries are forced to stop production. I don't think we have seen such kind of extreme measures to defeat a pandemic ever in this century. So it's no wonder that economy is getting the hit it doesn't deserve and continue to show a steady decline. To fight such extreme loss, firstly the government will have to step in to increase demand. The demand will only increase if people have money in their hand. Otherwise the wheel of the economy will not start rolling. It's a complete chain!

Government pays their citizens >> Citizens will go out to buy products from the market >> It will increase the demand >> Factories will recruit people to keep up with the demand >> People will find employment >> More money starts circulating into the economy >> Government will earn in taxes to ensure people welfare >> Government pays their citizen >> economy will start getting back on track

I would say, it's a good decision taken by US government to increase the demand in the market and to ensure that their economy doesn't collapse. It is an exceptional time, so looking at the traditional measures may not become helpful in such times. Let's hope that printing of money will help humanity at this testing time.

My prayer for all who are fighting against the odds!

[Darker45]

more helicopter money on the way?! everybody over age 16 would get $2k/month, no questions asked:

...Emergency Money for the People Act to provide additional cash payments for hard-working Americans who have been impacted by the COVID-19 pandemic.

...to every qualifying American over the age of 16...

There seems to be a qualification. This does not seem to be an assistance covering every single American aged 17 and beyond. I think those who are still employed and are receiving their regular salary won't be enjoying this. Well, if ever this will pass.

thoughts? what are the limits of money printing?

Money printing seems unlimited. The sky's the limit!

While this is a bit suicidal to the USD's value in the long term, at least this is going to provide a great relief to every single American who has lost his/her job during this crisis. Generally, this is much better than printing money and freely give them away to large companies. In other countries such as mine, a lot of the poorest of the poor, who are the ones bearing the brunt of this economic crisis brought by COVID-19, are not receiving even a pack of instant noodles.

[gentlemand]

Are the people who proposed this credible characters? Never heard of either of them.

I found the one off $1200 pretty weird. It would've been better to drip feed the same amount on a tiered basis but perhaps that's too close to UBI for their liking. Maybe they thought the idea of a one time windfall was less Unamerican.

I wonder when you add up the cost of tax breaks, subsidies, stimulus packages, welfare systems and the apparatus to administrate it all whether ongoing UBI would work out cheaper overall. Like many things even if it is cheaper the spiritual implications might be too much to countenace.

Since we're supposed to be having an AI-assisted jobs bonfire in the near future perhaps they've just brought the inevitable forward a bit.

[royalfestus]

Its a good palliative measure for those without money or income in this crisis but planning to get back demand should not be objective. With same mind of rescuing the economy he plans to remove laws that prevent lockdown and social distancing. First, there is no immediate way to handle inflation in coming days with the fund in circulation.  Secondly, the leadership might need to take caution on putting too much priority on economy than lives of the citizen, demand and relax of lockdown wont be substitute to lives and may ever be the greatest mistake they made. As we have decided to take enough time in this period, so be it

[Cratoon]

With this amount of new USD money in the economy, I believe the BTC and other main cryptos will fly us quickly.

[el kaka22]

Ro Khanna is a progressive democrat that has been co-chair of BERNIE which we all know is the king of progressives in America, so it is not a wonder why she would give this kind of offer to the congress. However even if this passes congress which it still has some troubles and doubtful, it will be stuck on Russian Mitch and wouldn't even be considered and voted on at all.

So, there is no 2000 a month money coming in at all. Hell they literally gave everyone only 1.200 for one time deal just so they could give 500 billion dollars to their corporation friends and that is something people will not forget soon enough (or at least I hope so). This is just a suggestion basically and will not become the reality, we would all hope it should, but we all know its just a dream.

[The Sceptical Chymist]

could this pass?

Not if someone with half a brain who has enough power to stop it has a say in the matter.  I'm not sure how they think the US is going to pay for such a relief effort--and I don't even know what the impact on taxes and inflation the first stimulus payment is going to be, and it worries me.  Part of me thinks that the Fed thinks it can get away with printing money nonstop, having done it a few times before without disastrous consequences.

But there are going to be consequences, that much I'm sure of, and somebody is going to have to pay for all this free money eventually. 

I'm also wondering how long the politicians think this crisis is going to go on, and my personal guess is that it's not going to be longer than six months and probably will be much less than that.  People aren't going to need all this relief money once they start getting back to work--which they will once businesses start to open again.  I don't know.  This proposal is stupid on its face, and it could just be political posturing.

[Gozie51]

I'm sure that too much money in the system leads to inflation, this is responding to ops question about printing of money, by economic teaching.

With this amount of new USD money in the economy, I believe the BTC and other main cryptos will fly us quickly.

I think this can happen too.
America is trying hard to support the people but I don't know if they have reserves already that can take care of this inflow.

[mu_enrico]

Well, whether this $2,000 will be granted or not, the $2.2 trillion CARES Act is still there. It's our opportunity to see if the mainstream economists are correct about printing money as a means to avoid recession/depression. The logic should be simple, that is the government must pay its debt. They may or may not get away with this recession, but this decision will backfire them at some point in the future, except if people will be so rich so that they can pay high taxes.

[Wenbing]

more helicopter money on the way?! everybody over age 16 would get $2k/month, no questions asked:

Washington, DC – Today, Representatives Ro Khanna (CA-17) and Tim Ryan (OH-13) introduced the Emergency Money for the People Act to provide additional cash payments for hard-working Americans who have been impacted by the COVID-19 pandemic. While the CARES Act was an important first step, its one-time payment does not provide nearly enough support for American families.

The Emergency Money for the People Act expands relief to more Americans and includes a $2,000 monthly payment to every qualifying American over the age of 16 for up to 12 months. It also fixes a bug in the CARES Act to ensure college students and adults with disabilities can still receive the payments even if claimed as a dependent. The Emergency Money for the People Act additionally recognizes that not everyone has a bank or a home address to receive a check –  so it allows individuals to get this money through direct deposit, check, pre-paid debit card, or mobile money platforms such as Venmo, Zelle, or PayPal.

Under the Emergency Money for the People Act, monthly cash assistance payments would be guaranteed for at least six months and would renew for another six months unless the employment-to-population ratio for people ages 16 and older returns to the pre-covid crisis employment level of 60%. These payments would not count as income in order to protect eligibility for any of the income-based state or federal government assistance programs.

Reps. Khanna and Ryan proposed the first cash infusion plan a month ago, which the Administration and Senate Republicans embraced, and was passed into law with the CARES Act. But as a record-number of Americans have filed for unemployment in the past weeks, it’s clear a one-time payment will not be remotely sufficient. In some places, this doesn’t even cover a month’s rent.

https://khanna.house.gov/media/press-releases/release-representatives-ro-khanna-and-tim-ryan-introduce-legislation-send

could this pass? 17 co-sponsors and counting. i never thought UBI would be on the table so soon, but with the economy on the verge of collapse, unemployment skyrocketing, social unrest around the corner.....it doesn't seem impossible anymore.

thoughts? what are the limits of money printing?

Printing more money and increasing the MS will trigger inflationary trend in the US economy unless production keep up with the money in circulation.

[Febo]

more helicopter money on the way?! everybody over age 16 would get $2k/month, no questions asked:

could this pass? 17 co-sponsors and counting. i never thought UBI would be on the table so soon, but with the economy on the verge of collapse, unemployment skyrocketing, social unrest around the corner.....it doesn't seem impossible anymore.

thoughts? what are the limits of money printing?

You cant really call it an UBI if it is just a temporary. UBI is a regular pay that happens every month.  Problem is that we have no ideas how ling countries will be locked down and how much GDP will drop in 2020. Helicopter money is one way to prevent total crash. But helicopter money is useless if country is still locked down. Since then people cant locally spend money. They will stack it or spend online and then helicopter money will lose all effect.

[dothebeats]

This would be a good thing for the Americans short-term, or as long as the pandemic is still ravaging the country. Though of course with such a huge sum of money being given for free to every American eligible for the fund, this would have severe effects in terms of taxation and the economy long-term, and I sure hope that everyone has already realized that printing a lot of money will have a detriment to the economy and someone is going to pay for those.

[DooMAD]

I have to laugh when there's going to be more resistance to this than there is to all the occasions when they've just handed the money directly to banks to dick about with and pretend that "trickle down" isn't entirely discredited.  Too much stimulus is undeniably a bad thing, but at least this time, assuming it goes ahead, the stimulus might actually live up to the supposed concept of actually boosting the economy.  It must be a crisis when it finally dawns on someone to do things the way they should have been done all along.  

[exstasie]

There seems to be a qualification. This does not seem to be an assistance covering every single American aged 17 and beyond. I think those who are still employed and are receiving their regular salary won't be enjoying this.

I don't think so. Even non-working dependents would get paid under this scheme. This is what is says under "eligibility":

Every American age 16 and older making less than $130,000 annually would receive at least $2,000 per month.

This is in addition to their normal salary, up to $130,000 annually.

I have to laugh when there's going to be more resistance to this than there is to all the occasions when they've just handed the money directly to banks to dick about with and pretend that "trickle down" isn't entirely discredited.  Too much stimulus is undeniably a bad thing, but at least this time, assuming it goes ahead, the stimulus might actually live up to the supposed concept of actually boosting the economy.  It must be a crisis when it finally dawns on someone to do things the way they should have been done all along.  

According to Erik Voorhees' math, this will cost $400 billion per month. The guaranteed 6 months would cost $10 trillion. Not even that crazy considering we're all expecting corporate bailouts in that range anyway. I'd much rather it go directly to actual consumers than continue this trickle-down bailout bullshit.

[pixie85]

With this amount of new USD money in the economy, I believe the BTC and other main cryptos will fly us quickly.

I hope that you understand that you can't give money that you do not have. This means they will have to make money. So they will print money and give it away for people to spend.

They'll dillute the dolladr and make it worth even less and that 2000 that people will think is a lot will kick them in the ass a year later when they'll have to pay $20 for a pack of cigarettes.

[eaLiTy]

There seems to be a qualification. This does not seem to be an assistance covering every single American aged 17 and beyond. I think those who are still employed and are receiving their regular salary won't be enjoying this. Well, if ever this will pass.

The package seems to be huge and they need to print a lot of currency as they are planning to provide two thousand dollars for anyone above 16 years who are making an annual income less than $130,000 is eligible for this package and any married couple earning less than $260,000 will get $4000 and every kid will get $500. With elections coming up i wont be surprised if Trump will find a way to pass this proposed bill.

The guaranteed 6 months would cost $10 trillion. Not even that crazy considering we're all expecting corporate bailouts in that range anyway. I'd much rather it go directly to actual consumers than continue this trickle-down bailout bullshit.

Considering the bailout bullshit for corporate companies these are not that huge but the problem lies when these corporate will need the bailout this time around as there will be more companies in trouble with the recession is imminent because of complete lock down and the virus scare and how each and every government will overcome these is just a puzzle.

[DooMAD]

They'll dillute the dolladr and make it worth even less and that 2000 that people will think is a lot will kick them in the ass a rear later when they'll have to pay $20 for a pack of cigarettes.

Sure, but the simple fact is, they will spend the money.  You can't have an economy if people aren't doing that.  When you compare it to all the other times they've printed money, which has also diluted the value time and time again, but the economy never saw the same kind of monetary "flow" from it that this will likely bring.  Money needs to circulate and it can't do that when the banks effectively just funnel QE into their silly little derivatives casino.  Anything is better than that.

[Kasabus]

With this amount of new USD money in the economy, I believe the BTC and other main cryptos will fly us quickly.

I hope that you understand that you can't give money that you do not have. This means they will have to make money. So they will print money and give it away for people to spend.

They'll dillute the dolladr and make it worth even less and that 2000 that people will think is a lot will kick them in the ass a year later when they'll have to pay $20 for a pack of cigarettes.

This is not just happening in America but even to some countries who gives financial assistance to all senior citizens and persons with disabilities and even to those citizens who are not able to go their work because of covid 19. This means printing more money until this crisis comes to an end.

[dunfida]

This would be a good thing for the Americans short-term, or as long as the pandemic is still ravaging the country. Though of course with such a huge sum of money being given for free to every American eligible for the fund, this would have severe effects in terms of taxation and the economy long-term, and I sure hope that everyone has already realized that printing a lot of money will have a detriment to the economy and someone is going to pay for those.

Before making this decisions they are already fully aware on what are the cons on printing out more money but on times like these then i wont say its a bad idea and pretty sure that they wouldnt care for that matter as of this moment, what important is that they do able to sustain and give out help on temporary basis.. They would mind the problem or effects later on after this global problem
would be resolved.