The Direct Cash Payments/Giveaways (+ Side Discussions About Inflation and Deflation)

[Chop]

Andrew Yang may get his wish after all. It’s looking more and more like direct $ payments will be made by the government to every citizen (at least for a while). I said Yang was ahead of his time, but I thought he was 3-4 decades ahead of his time—not 3-4 months...

 

[OUBubba]

I thought socialism was bad?

 

[Chop]

To my knowledge, Yang’s ideas, and this plan, do not transfer the means of production from private hands to the government.

 

[Statalyzer]

This is not a "Andrew Yang gets his wish" scenario. A one-time infusion is very different from perpetual monthly payments.

 

[Chop]

This is not a "Andrew Yang gets his wish" scenario. A one-time infusion is very different from perpetual monthly payments.

Fair enough point. I have no idea how this will ultimately play out. Based on past government actions, don’t be surprised if there is massive outcry about taking the free money away, and a move to make it permanent, once the timeframe on the temporary payments runs out. Plenty of working and middle class folks will want to keep it going (assuming it ever happens in the first place) because they will get the $ too. It’s like social security where everyone gets the $, not just the welfare class. Hence it’s popularity.

Downside = inflation. But with a deflationary environment, that’s less a concern than normal.

 

[nashhorn]

The inevitable outcry when the $ stop is my fear too.

 

[militaryhorn]

Fair enough point. I have no idea how this will ultimately play out. Based on past government actions, don’t be surprised if there is massive outcry about taking the free money away, and a move to make it permanent, once the timeframe on the temporary payments runs out. Plenty of working and middle class folks will want to keep it going (assuming it ever happens in the first place) because they will get the $ too. It’s like social security where everyone gets the $, not just the welfare class. Hence it’s popularity.

Downside = inflation. But with a deflationary environment, that’s less a concern than normal.

In both your posts you said payments, my understanding is that they want a ONE time payment like other stimulus checks from the government in the past. Not sure if there was an outcry to keep those former checks from stopping but I think that this time around would be no different than from the past.

 

[Chop]

The inevitable outcry when the $ stop is my fear too.

Yep. That heartless, soulless bastard Trump is trying to take away our free money that belongs to us as our birthright!

 

[Chop]

In both your posts you said payments, my understanding is that they want a ONE time payment like other stimulus checks from the government in the past. Not sure if there was an outcry to keep those former checks from stopping but I think that this time around would be no different than from the past.

Could be. It may depend on how long it takes to rid us of the virus shock to the economy. With the Reps controlling the Senate and the Dems controlling the House, it’s got to have something for everyone. In an election year with this virus lingering around, marginal GOP office holders may support things that they normally would not.

 

[Austin_Bill]

Downside = inflation. But with a deflationary environment, that’s less a concern than normal.

You do realize that sometimes inflation isn't a bad thing.

case in point.

In 1976, my parents bought their first home. It was a modest home back then. It cost them $36,000 for that home. 3-2-2 1400 sf. With inflation that home became a steal of a deal. Can you imagine buying a brand new home today for $36K?

For those of us who have a mortgage for say 300K as long as we can survive the inflating period, we are better off in the long run because as inflation goes up so does our wages. An average annual wage in 2020 might be 74K per household, but by 2030 it might be 150K, but the home mortgage you have is still 300K. Now that home looks like a steal of a deal.

 

[Chop]

You do realize that sometimes inflation isn't a bad thing.

case in point.

In 1976, my parents bought their first home. It was a modest home back then. It cost them $36,000 for that home. 3-2-2 1400 sf. With inflation that home became a steal of a deal. Can you imagine buying a brand new home today for $36K?

For those of us who have a mortgage for say 300K as long as we can survive the inflating period, we are better off in the long run because as inflation goes up so does our wages. An average annual wage in 2020 might be 74K per household, but by 2030 it might be 150K, but the home mortgage you have is still 300K. Now that home looks like a steal of a deal.

Yep. I agree. Mild inflation is actually a good thing. Deflation is even worse—ask Japan. But hyper-inflation is worst of all—ask much of Latin America.

Right now, in a somewhat deflationary environment, high or certainly hyper inflation isn’t even on the radar yet.

 

[Chop]

Treasury plan calls for emergency checks starting April 6

The Treasury Dept is asking Congress to kick off the new program with two rounds of direct cash payments to people (initially). April 6 and May 18--at $250 Billion each. Also requested is aid for industry including $50 Billion in loans to the airline industry. Trump is requesting small business loans as well.

 

[Driver 8]

 

[OUBubba]

You do realize that sometimes inflation isn't a bad thing.

case in point.

In 1976, my parents bought their first home. It was a modest home back then. It cost them $36,000 for that home. 3-2-2 1400 sf. With inflation that home became a steal of a deal. Can you imagine buying a brand new home today for $36K?

For those of us who have a mortgage for say 300K as long as we can survive the inflating period, we are better off in the long run because as inflation goes up so does our wages. An average annual wage in 2020 might be 74K per household, but by 2030 it might be 150K, but the home mortgage you have is still 300K. Now that home looks like a steal of a deal.

What's your parent's home worth now? In crappy small town eastern Oklahoma my mom's house has gone from $22,000 to about $180,000 since 1968.

 

[OUBubba]

Yep. I agree. Mild inflation is actually a good thing. Deflation is even worse—ask Japan. But hyper-inflation is worst of all—ask much of Latin America.

Right now, in a somewhat deflationary environment, high or certainly hyper inflation isn’t even on the radar yet.

Is that when a cerveza costs 5,500 pesos? That's tough math when you're about 10 in.

 

[Chop]

When you're talking pesos or baht, that's all just Monopoly money.

 

[SabreHorn]

Bubba,

I have a smartass reply about the house, but you're too nice a guy unless you're one of my distant cousins, but not sure any of them can operate a laptop.

That said, I have paid over 5000 pesos for a beer. In fact I left a one million pesos tip at Bogart's. Exchange rate was 3300 to one. I framed the receipt.

Then I sweated my *** off that AmEx would screw up the bill or the exchange rate.

 

[iatrogenic]

Bubba,

I have a smartass reply about the house, but you're too nice a guy unless you're one of my distant cousins, but not sure any of them can operate a laptop.

That said, I have paid over 5000 pesos for a beer. In fact I left a one million pesos tip at Bogart's. Exchange rate was 3300 to one. I framed the receipt.

Then I sweated my *** off that AmEx would screw up the bill or the exchange rate.

Mine was going to be about how new tires can really spruce up a single wide.

 

[Garmel]

Mine was going to be about how new tires can really spruce up a single wide.

Bubba's going to be upgrading to a double-wide and I'm sure he'll be sprucing up the Barrymobile as well with gubment money.

 

[OUBubba]

Bubba,

I have a smartass reply about the house, but you're too nice a guy unless you're one of my distant cousins, but not sure any of them can operate a laptop.

That said, I have paid over 5000 pesos for a beer. In fact I left a one million pesos tip at Bogart's. Exchange rate was 3300 to one. I framed the receipt.

Then I sweated my *** off that AmEx would screw up the bill or the exchange rate.

I bet you did some sweating.

give me your smack! It’s all in good fun.

 

[SabreHorn]

Someone already posted. I was going to ask i you bought you mother new tires for her home.

People joke, but I have family, albeit distant. that it isn't a joke for. I took my mother to her first cousin's funeral a couple of month's after my dad passed. I let my teenage daughter go. As I tell people, she got to see white trash up close and personal and find out they were "family"

Two classic moments were:

1) My cousin bragging to me that his wife got a promotion and raise at the Tyson plant. She was up to over $7/hr. With that extra money, they could buy five acres and a single wide as soon as he got his worker's comp settlement. She drove a Mazda 626 with true sun roof - glass was missing.

2) When we got home, we were telling other family about the trip and she asked me "which one was she"; I replied, "she was the one overweight with dark hair and bad teeth". My daughter said. "Daddy, I don't want to hurt your feelings, but all your female relatives up there are overweight with dark hair and bad teeth".

 

[SabreHorn]

I take it you have been to Heavner, Holdenville, Wister, Waldron, & Poteau

 

[Austin_Bill]

What's your parent's home worth now? In crappy small town eastern Oklahoma my mom's house has gone from $22,000 to about $180,000 since 1968.

That house was sold years ago. however renovated homes in that neighborhood are going for about 230K. A quick check of the MLS says if it was fully renovated you can put it on the market for 250K and expect to get about 235K. That house is in Universal City Tx, a suburb of San Antonio.

 

[Chop]

I bet you did some sweating.

give me your smack! It’s all in good fun.

Serious (sort of) question. As you well know, Texans sometimes stereotype and make fun of Oklahomans as poor, uneducated rednecks with poor hygiene who tend to live in mobile homes. You can find that all over these and other boards. How do Oklahomans stereotype and make fun of Texans? (not UT/Longhorns, just Texans in general)

 

[Chop]

I thought socialism was bad?

Well, I guess it's ok if done under the right leadership.

 

[Joe Fan]

The virus is sort of like an extended Christmas morning for Democrats

 

[SabreHorn]

Joe,

Can't agree. They will all ***** because they all got free cell phones last time.

 

[Joe Fan]

Joe,
Can't agree. They will all ***** because they all got free cell phones last time.

Probably true. They are all one-trick ponies now with regarding to bitching.
I cant rmbr them doing anything else

 

[LongestHorn]

The virus is sort of like an extended Christmas morning for Democrats

I’m sure the valued Texas conservatives won’t vote to support such a socialist bill. America vs Socialism.

 

[Joe Fan]

I’m sure the valued Texas conservatives won’t vote to support such a socialist bill. America vs Socialism.

I am not sure calling a governmental response to a global pandemic "socialism" is accurate. Do the various bills call for the Govt to take over the "means of production?" I dont think so. What I have seen is that the Govt is giving business and industry plenty of incentive to direct production of certain products as quickly as possible. But that doesnt qualify as socialism. If we had a Dem president right now, this might be a different story. But we dont.

As far as the Keynesian economic stimulus ideas go, I admit I dont agree with most of these plans. Your question seems to be whether a temporary, one-time direct economic response to a legitimate national crisis makes the US more socialist than it was the day before. Probably not. But I dont really care that much. It's about to roll over us no matter what we think. I have no choice but to accept it. I care much more about things like extracting the world supply chain from China and bringing OEMs back to North America.