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Showing posts from March, 2020

A 21st Century New Deal

There are a lot of #coronavirus rebate policies floating around. My response considers these policies broadly. The policy we need must have elements that are universal, need-basis, and industry/occupation-targeted. Basically, we need a 21st Century New Deal.
Most of the policies presented are income-based, and the worse are contingent on tax liabilities. The overwhelming majority ignore that need is created both by how consumers actually spend their money and how American workers make their money. Let me explain why such policies ultimately will be inefficient at plugging the gap in the long run. 
Foremost, income-based policies ignore the choking reality of wealth inequality. Assets (e.g., savings, checking accounts) are the primary means people have to cope with financial crises. Yet, a sizeable portion of the American public has little to no savings but this is being completely ignored. 
Moreover, most policies conveniently ignore the outstanding burden of debt liabilities. Even r…