If there have been any doubts about whether or not extra federal helicopter cash can be falling from the sky, these doubts ought to have been erased by a number of main occasions that occurred final week.
The most recent occasion—which possible sealed the deal—was the December jobs report, which confirmed the economic system shedding 140,000 jobs, the primary drop in payrolls since final April. If Congress wanted one other reminder of how many individuals are nonetheless struggling on the market and that extra assist is required, that ought to do it.
The second occasion was the Democrats prevailing within the particular elections for Georgia’s two Senate seats, giving the celebration an efficient majority in that physique to proceed holding on the Home. On paper, in fact, each events have 50 seats within the Senate. However let’s not neglect that Vice President Kamala Harris will maintain the tie-breaking vote.
However her vote in all probability will not be wanted within the present political setting. Whereas the Democrat majority appears razor-thin, if existent in any respect, we might be pretty sure that votes in favor of extra stimulus shall be a lot larger than that and bipartisan, due to the riot on Capitol Hill on Thursday. In gentle of what occurred, what number of Republicans do you assume shall be courageous sufficient to vote in opposition to the Democrats on absolutely anything, significantly extra stimulus checks, which lots of them already favor?
It is onerous to consider that soon-to-be-former Senate Majority Chief Mitch McConnell will stand in the way in which of extra stimulus checks like he did final month, particularly after his spouse, Transportation Secretary Elaine Chao, resigned from the Cupboard final week within the wake of the riots. (I guess you did not know that McConnell and Chao have been married; speak about a Washington energy couple).
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And naturally, whereas all this is happening, the information on the Coronavirus entrance simply appears to be getting worse. Whereas it is a good factor for the economic system that there hasn’t been a significant shutdown like there was final spring, the actual fact is that extra persons are contracting the virus, and extra persons are dying. In the meantime, the rollout of the varied vaccines appears to be going quite a bit slower than beforehand anticipated.
If all of these issues do not argue for extra stimulus checks, and as shortly as potential, I do not know what does.
Late final yr, you bear in mind, soon-to-be-former President Trump urged Congress to extend the $600 stimulus checks to $2,000, a suggestion that was instantly seconded by Democrat leaders in Congress, in all probability the primary time they’d agreed with Trump on something previously 4 years. So with the Republicans prone to be cowed into submission within the face of the riots within the Capitol constructing final week, the Democrats strutting as if they’ve a 25-seat Senate majority and President-elect Joe Biden champing on the bit to signal a stimulus invoice, one other direct deposit by the secretary of the Treasury will in all probability be making its approach into your checking account fairly quickly.
Not that anyone cares anymore, however who’s going to pay for all this, you ask? Why, you and me—and nobody. Biden can also be itching to undo Trump’s tax cuts and lift taxes on “the wealthy,” who at all times know the best way to keep away from taxes. And firms simply go the price of them on to their clients. Within the interim, the Federal Reserve stands prepared as at all times to swallow up all that authorities debt and pump extra money into the economic system from the financial facet.
Inflation bought you fearful? Proper now, given the weak spot of the economic system, there does not appear to be any kindling to ignite inflation within the close to future, irrespective of how a lot cash the federal government is spending. And even when that unlikely occasion have been to happen, the Fed has already assured us that it’s ready to disregard larger inflation for no less than just a few years, 2023 on the earliest. In the meantime, the largesse from Washington will proceed apace.
So should you assume final week’s chain of occasions was a nasty factor, you are taking a look at it the unsuitable approach. On Wall Avenue, unhealthy information is sweet information and vice versa. So loosen up and benefit from the cash. You earned it.
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INO.com Contributor – Fed & Curiosity Charges
Disclosure: This text is the opinion of the contributor themselves. The above is a matter of opinion supplied for normal info functions solely and isn’t supposed as funding recommendation. This contributor is just not receiving compensation (aside from from INO.com) for his or her opinion.