Opinion| After a few months of one of the most devastating financial events in modern history, there have been many different plans floated as the way to get American past the fallout.
President Trump seems to be interested in moving forward with a plan which some estimate having a price tag of about 1,500,000,000,000 (1.5 trillion) US dollars.
As you well remember, back in 2008, George W. Bush signed into the law the infamous ‘bank bailout’ or TARP program (Troubled Asset Relief Program).
This federal government bailout ‘was proposed by Treasury Secretary Henry Paulson, passed by the 110th United States Congress, and signed into law by President George W. Bush. The act became law as part of Public Law 110-343 on October 3, 2008, in the midst of the financial crisis of 2007–2008. The law created the $700 billion Troubled Asset Relief Program (TARP) to purchase toxic assets from banks. The funds for purchase of distressed assets were mostly redirected to inject capital into banks and other financial institutions while the Treasury continued to examine the usefulness of targeted asset purchases.’
‘Early estimates for the total cost of the bailout to the government were as much as $700 billion, however TARP recovered funds totalling $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit or an annualized rate of return of 0.6% and perhaps a loss when adjusted for inflation.’ According to Wikipedia.
Now most Americans that I have talked to were not happy with this ‘too big to fail’ schtick that the banks played with our money.
Now America finds itself in an economic bind yet again; however, this time, the origin is not due to irresponsible loans and perhaps fraudulent classifications of mortgage notes, it is due to a pandemic that seems to have originated in China.
Millions of Americans are out of work and facing financial ruin in the wake of the ‘shelter in place’ orders and forced, government-ordered “social distancing” and self-imposed quarantine.
President Trump is not the only one pitching a plan to jump-start the US economy.
Democrat Representative and ‘Squad’ member, Rashida Tlaib, also has a plan, one which she took to Twitter to discuss:
I also want to encourage leadership to consider my truly universal relief proposal on behalf of #13thDistrictStrong.
2) This includes the Treasury using its legal authority to create a new mint program to fund:
Direct payments via preloaded $2,000 cash cards to everyone.
Recharging with $1,000/month until a year after the economy recovers.
This includes the Treasury using its legal authority to create a new mint program to fund:
✅Direct payments via preloaded $2,000 cash cards to everyone.
✅Recharging with $1,000/month until a year after the economy recovers.
Read all about it here: https://t.co/JJI0z2bNFy
— Congresswoman Rashida Tlaib (@RepRashida) March 21, 2020
There is one huge, glaring agenda present in the document: Rashida wants to give noncitizens, presumably those who violated immigration laws to enter the United States, thousands of dollars.
How are we going to pay for this multi-trillion dollar hand out? We will just flirt with hyperinflation by ‘printing’ the money.
The Congresswoman talks about minting 2 ‘Trillion dollar’ platinum coins, which the treasury would ‘sell’ to the Federal Reserve. The result of this, IMHO, would be inflation and a global loss in confidence of the ability of the United States to be a responsible steward of the global reserve currency.
I am just going to go out on a limb here and imagine just how many people would be tempted to flood into the US in hopes of taking advantage of the ‘free money.’
Here is the text from the link at the bottom of the link Representative Tlaib’s plan:
It sure feels to me like the Democrats are trying to use this crisis to jam through all of their radically leftist policies from a huge expansion of Medicare, nationalization of industries, and huge payments … to noncitizens.
At this point, I can not figure out which will end up being a bigger threat to our nation in the long term. Will it be the Coronavirus, or the Democrats’ proposed ‘solutions’ to the crisis?