Thursday, April 16, 2020

The $1200 "stimulus"

Don't assume everyone you know suddenly has an extra $1200. Some don't.

Receiving that money from Uncle Scam is contingent upon meeting certain conditions which many people, for one reason or another, do not meet.

I'm noticing an economic fact I hadn't considered before. If the "supply" of fiat money instantly goes up, but a few people are left out, it's like those people suddenly lost ground. Yes, I expect everyone else to catch up (catch down?) eventually when the piper must be paid, so the situation will be temporary.

That is, the pain won't always be limited to those who didn't get the money-- I expect the economic pain to hit everyone before this is all over. Those who didn't get the payoff will just be hit twice because they will still have to suffer the effects of the payoff without getting the payoff. Does that seem right to you?

I don't want that to happen-- I'd much rather the painful effects be limited to as few as possible since the payoffs are already a done deal. But you and I, not being fake economists, know that's not going to be the way this goes.

If you are one of those who received "stimulus money", I recommend spending it all on guns, ammo, and survival foods if you don't need it for more immediate necessities. It would be a good way to make that money last a bit longer and benefit you in the long run. Guns and ammo, in particular, are always a good digitus impudicus aimed at the State. Use it well.

Writing to promote liberty is my job.
YOU get to decide if I get paid.
I hope I add something you find valuable enough to support.