There is an urgency in Washington to pass more economic stimulus relief for the people of the country. The Biden Administration wants a $1.9 Trillion relief package and the opposition is pushing a proposal for less, at around $600 Billion. The question is- Do we need any more stimulus at all?
When things are unsettled, as they are now, people feel the need to do something. Politicians, being the weather-vane that they are, definitely feel the urge to DO SOMETHING. It has been famously said, never let a crisis go to waste, yet an economic crisis does not get solved like a light switch that can just be flipped back on. The trajectory for economic recovery is building. If we stay on the current path, we may well see a recovery take hold by this summer. Perhaps our leaders should consider following the plan for virus testing and distribution, and let things recover on the current path so as not to burden our children and grandchildren with more crushing debts.
It also turns out that the tax receipts collected in 2020 by many states are better than what was originally feared. Certain states, like Florida, are already back to previous levels. Adding an additional $1.9 Trillion of debt, with the associated risks like the United States becoming one of the largest debtor nations in the world, is a scenario where the risks of the stimulus may outweigh the risks of not doing a stimulus.
Our leaders, being the rational actors that they are, would weigh the risks and possibly not do the stimulus then, right? In a scenario where the stimulus is not needed, may there be other reasons that our political leaders would rush to add so much to our national debt, as they seem to be doing?
Here is commentary, from an editorial published in the Chicago Tribune, on this matter. Let me know what you think… ~ Brian Kasal- The Leadership Matrix
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