A Serious Question About the Proposed Stimulus Checks

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Filed under: Market Comentary

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I need someone to objectively help me understand why we are talking about giving tons of money in stimulus checks to everyone in the United States. I realize it’s not everyone because there are limitations on income, etc. But, why are we contemplating $600 or $2,000 across the board?

I want to be clear: there are a lot of people that are out of work right now, due to no fault of their own. Here in California the governor has shut many jobs down, and it’s happening across the country. I fully believe that we need to take care of those people through unemployment and whatever needs to be done. If the government tells you that you can’t work, then I believe they should find a way to take care of you.

Looking at the Workforce Numbers

Here’s what I don’t understand:

According to the Bureau of Labor and Statistics – In February, the US workforce was approximately 165 million people. According to November’s job data, there are currently about 10.7 million people out of work.

I don’t know if these numbers are accurate. There are probably another 5 million people that are underemployed due to the pandemic. Let’s round it out to 16 million to make it easy math. That works out to be 10% of the labor force who had a job at the beginning of the year and doesn’t have a job now. Shouldn’t we be taking care of them?

Share Your Comments

Please comment if you have any insights on understanding why this is the approach. If people are continuing to work and have their jobs, why are they going to receive a stimulus check? Is that the message we want to send out there? Sure, the money will be pumped back into the economy – which is part of the answer to this question.

But I’m still wondering by we are leveraging the financial future of the US dollar and our country on sending stimulus checks to people who don’t need it. Wouldn’t it be better to send the support only to the people who really need it?

That’s the question of the day. If you need help with your mortgage, then I’m always here to help. Reach out any time!

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