Stimulus

The Reasons Stimulus goes to working people too

The Reasons Stimulus goes to working people too

So some are mad about stimulus money going to working people still able to collect a paycheck. It's actually not the problem you think it is.

The costs of filtering out the people still working has been proven to cost just as much (or more) than just paying them. So it doesn't pass the "cost/benefit analyses" test. The word for that is referred to as Means Testing. Studies show that although it makes great hyperbolic headlines, the math doesn't work out.

You also need to remember that this is a stimulus. It's main purpose is to stimulate the economy.

Poor people tend to spend money given to them. So it helps people all the way up. This also makes that money move. Money circulation is the goal. It circulates more when fed to poor people than rich people.

Rich people tend to horde money, invest money, and send it to offshore accounts. Now even if you feel that there is nothing wrong with that, it does nothing to stimulate the economy. Poor people spend, rich people save. So feed it to poor people if you want that money to circulate. Feed it to rich people if you want the money to stagnate.

So it really doesn't matter if the people are working or not. That extra money has a purpose. It serves that purpose by getting it to the people who will circulate it.

Can we also talk about hazard pay? If you are still working, the chances are pretty high that you are in a job where your life is being put at risk by going to work. People who clean, people who fix things, people who prepare food, people who deliver things, etc. They are what we call essential workers. So let's show them how essential they really are by letting them have a little extra for a month or two without a bunch of Karen's throwing tantrums, ok?