Some thoughts on the Coronavirus stimulus package and who benefits: (1/ x) :
1) Expenses are way down because of lockdown: no travel, clothes, commute, luxuries. In stimulus: taxes deferred (and in some cases reduced), student loans deferred. Family of 4 will get about $3400 to cover food.... (2/x)
2) My guess is: US economy will need one more month of this part. People who filed taxes electronically will get direct deposit into your accounts by April 6. My feeling: this amount could be $20,000 per person if 100% of the stimulus went direct to people. What is better?
3) SBA Loans for small businesses: 28 million small businesses. Get 2.5x monthly payroll. 10 year loan, 4% interest, loan forgiven if you hold onto your employees for 8 weeks. Find a lender here: sba.gov/funding-progra… DO THIS. Borrow as much as possible.
4) $58 billion to airlines is useless. These companies are going bankrupt anyway. With almost 600,000 employees. govt should just distribute to the employees: $100,000 each = $60 billion.
5) $10 billion infusion in Post Office to prevent it from closing down. My view: Close the Post Office. Distribute $20,000 a person to their 500,000 employees. You can't band-aid a band-aid. The blood will keep spilling.
6) Unemployment insurance (3.1 MILLION people applied last week, an all-time record by a factor of 4): is extended and enhanced. Get it.
7) If you are financially stressed, my additional advice (take it for what it's worth, I've gone broke a bunch of times): DO NOT pay credit cards, rents, mortgages, other debts. No evictions by law, and credit score is meaningless right now.
8) What if you are self-employed and losing business? You can now apply for unemployment benefits. $600 / week. For 10 months.
9) The overall effect of the Coronavirus Stimulus: This "flattens the curve" on the fallout in the economy. With demand going to zero and cash for food and necessities, the overall economy can withstand another month of lockdown and emerge better. BUT...
10) if lockdown lasts longer than another stimulus package is needed and this time ZERO industries should be helped and all cash goes straight to the individual in my opinion.
