B4YOU
All-Pro
- Joined
- Mar 17, 2017
- Messages
- 6,160
- Reaction score
- 10,388
Offline
Part of the problem is that most Americans spend every penny they make and have no emergency savings. A lot of this "my freedom!" crap is code for "I'm financially irresponsible and don't have any cash reserves and I'm about to lose the McMansion and BMW that I shouldn't have bought on my salary to begin with!".
Same goes for businesses. Owners milk their businesses for every ounce of liquidity to buy the aforementioned McMansions and BMWs and don't leave anything in there for disasters or business interruptions. I don't think there should be any bailouts for any business of any size. And I think the income limit for personal bailouts was way too high. We as a society continue to encourage people to live beyond their means and act financially irresponsible. Why would anyone stop doing that if they know there's a bailout every time?
And the funny part is that right now a lot of the people panicking because they've been living beyond their means and a two month interruption in pay is disastrous are the "pick yourselves up by the bootstraps!" crowd. Huh.
There is a ton of inequality going on right now with Covid-19 funding:
Unemployed - $600/wk
Everyone under $75k - $1200
Businesses - 2.5 months payroll expenses
My girl is a sole proprietor who just got her PPP payment of $18k. Mid March to Mid April she made 1/6th and mid April to mid May made 1/3 her typical earnings. She expects to be 100% by mid June. Most likely there will be a back log of demand in July and she will end up pocketing $4-6k more than what she would have made when it converts to a grant. Lot's of businesses are going to make huge profits off this. North Dakota was the highest recipient of PPP money per capita and received twice the amount of CA and NY. If your business lost no income, then you just got 2.5 months of free payroll by the government.
Where did the Small Business Paycheck Protection Program (PPP) Loans in response to COVID-19 go?
Where did the Small Business Paycheck Protection Program (PPP) Loans in response to COVID-19 go?
usafacts.org
I think it's fair to question the $1200 and PPP/EIDL funding. The $1200 payment is the scraps that government gives to people to keep them from getting irate about the huge payouts to businesses. There is no reason to give businesses 2.5 months of payroll and workers less than 1 week of pay.
The income limits were not too high for some metro areas. I also think the unemployment and $1200 should have been scaled to cost of living especially since urban areas are the worst hit for Covid-19