Stimulus checks forever
some lawmakers are pushing for a fourth round of stimulus aid that would effectively send recurring payments until the pandemic ends.
Which, when defined as “ZeroCovid” is never.
- Official unemployment rate is 5.2%. Economists have long considered 5% as full employment due to the dynamics of the employment market.
- There are currently more job openings than people identified as looking for work.
- This is separate from the Child Tax Credit payments that many continue to receive.
- This is separate from proposed $7,500 to $12,500 subsidies for buying EVs.
- It is unclear how this will be paid for.
As best I can tell, the goal is to implement full Scandinavian social benefits programs without actually saying so, without debate and discussion, and without (yet) raising taxes to 40-70% of your annual income (actual values from Denmark). Sharp tax hikes come later.
Another difference is Scandinavian countries do not have 30 trillion dollars in debts and non-stop deficit spending. Norway currently has a budget surplus, and a trillion dollar sovereign wealth fund that pays for many programs. Sweden had a budget surplus 2016-2019, and a deficit in 2020. Denmark had a budget surplus for 5 of the past 7 years. Other countries, like Netherlands, have had budget surpluses 4 out of the past 5 years.
The Democrats are asking: Do we want lots of “free” goodies?
But the accurate question is: Do you want to pay Denmark level taxes of 40-70% of your annual income?