Tag Archives: economic stimulus

economic news, national news

‘Meager’ jobs report prompts more action? Sure, but wait

By John Kanelis / johnkanelis_92@hotmail.com

The Labor Department produced some relatively desultory job-creation figures this morning.

The private non-farm sector generated “only” 266,000 jobs in April, said the Labor bean counters. There had been projections of a million plus such jobs.

What was the response from President Biden? He said the relatively skimpy job growth means the government must do more to stimulate an economy crushed by the COVID pandemic.

I agree with him … to a point.

The jobs figures signal a need to approve something akin to the infrastructure/family/jobs package that Biden has presented to Congress.

I am not sure that we need to receive yet another round of “stimulus checks” to boost the economy.

Don’t get me wrong. My wife and I appreciate the aid we got from the government already. The $2,400 we received during the last year of the Trump administration and the $2,800 we received shortly after Joe Biden took office both have gone a long way to easing any difficulty in our home.

However, I remain a deficit hawk. I am fearful of the enormous deficits being run up during the current federal budget year. I want there to be more economic aid, but I also want it to come in the form of boosting tax rates for mega-wealthy Americans and corporations who find a way to avoid shouldering their share of the tax burden.

As for the infrastructure portion of the Biden package, by all means let us put people to work building and rebuilding our roads, bridges, airports and seaports. President Biden has thrown out an interesting idea, to re-create the Civilian Conservation Corps established during the Franklin Roosevelt administration as a way to rid the nation of the Great Depression. Let’s have that discussion, too.

I am not panicking just because one month’s job numbers didn’t measure up to what the brainiacs had predicted. I urge our government leaders to avoid pushing the economic pedal to the metal full bore.

economic news

Stimulus arrives, but do I swoon over name on memo line? Uhh, no

Our “economic stimulus payment” arrived in the mail today.

The name below that term on the check’s memo line read “President Donald J. Trump.”

Gosh. What am I supposed to do now? Do I swoon over the fact that Donald Trump’s name appears on the memo line? Would I do so were I a dedicated adherent to the cult of personality that Trump seems to have cultivated?

I cannot put myself into the shoes of one of those folks.

I looked at the payment. We signed it. We’re going to deposit it into the bank. I will not give another thought — not even a passing thought — to the name on the memo line. You see, this payment was much less Donald Trump’s doing than that of the Treasury secretary and the leaders of both congressional chambers; and, by howdy, that includes the Democrats who control the House and who comprise a substantial minority in the Senate.

How much heavy lifting did Donald John Trump do to bring this payment to one American household? My best guess: hardly any.

national news

Mnuchin takes one for the team?

Treasury Secretary Steve Mnuchin has come clean … I guess.

He told CNN’s Jake Tapper today that putting Donald Trump’s name on the stimulus checks that are coming to millions of American households was, um, his idea.

Yep. Mnuchin said he brought up the idea of putting Trump’s name on the checks, given that the Treasury boss’s signature already is on the checks. Trump’s name appears on the memo line.

Hmm. I’m trying to digest that one.

It looks to me as if Mnuchin is throwing himself in front of the proverbial bus on that one. My own belief since this matter came to light was that Trump wanted to put his name somewhere on the document as if to remind recipients — many of whom are, uh, voters — that the president is somehow responsible for the money that will land in people’s mail boxes soon. Trump is responsible for the relief coming in the wake of the coronavirus pandemic.

I’m still waiting for someone on the Trump team to spill more beans, revealing who, indeed, came up with this nutty notion. You see, I consider Mnuchin to be a serious Trump toadie.

None of this really amounts to anything more than just idle gossip, except for the potentially political consequence of Trump’s name showing up on these government checks in what has been called an “unprecedented” event.

State news

Undocumented immigrants getting unfair punishment

Oh, if we only could muster up a bit of compassion in this country for U.S. residents who lack proper immigration documents, but who perform “essential” work, pay their taxes and behave themselves.

These folks are being neglected by the “economic stimulus package” that is being sent to millions of Americans. They won’t receive the help that is going to U.S. citizens.

Call me a bleeding heart if you wish. I’m OK with that as it regards this issue.

The Texas Tribune reports that roughly 8.2 percent of Texas’ workforce comprises undocumented immigrants. Yes, they are here “illegally” in the strict definition of the term. They face deportation by the Trump administration.

But they pay their taxes, giving money to the U.S. Treasury. They do not break other U.S. laws. They act as de facto law-abiding citizens. Except they are being shut out of the government’s economic stimulus initiative activated by the coronavirus pandemic.

I do not believe that is fair. It is as unfair as the effort to criminalize the Dreamers who live here “illegally” because their parents brought them to this country as children. They are recipients of the Deferred Action on Childhood Arrivals measure enacted by President Obama, but which was revoked by Donald J. Trump. The state and nation are full of DACA recipients who have lived as model “citizens,” even as they lack the documentation that grants them citizenship, or even legal immigrant status.

And so the unfairness is now spilling onto those who deserve some economic relief in this perilous time.

Uncategorized

Stock index sets record, but no one’s cheering?

The Standard and Poor’s index closed at a record high today.

Wall Street’s indices all have recovered what they lost during the Great Recession of 2008-09 — and then some.

And yet …

We keep hearing from the chronic naysayers that the economy is in the tank. They bemoan the economic stimulus enacted shortly after Barack Obama became president. They decry the slowness of job growth. They ignore the other indicators that are blaring loudly and clearly that the economy is on its way back.

http://money.cnn.com/2014/02/27/investing/stocks-markets/index.html

Why is that?

Oh, silly me. It’s politics. I forget sometimes that in the political world, reality often takes a back seat to people’s ambition, which they usually promote at others’ expense.

I am heartened that my own retirement account hasn’t been flushed permanently down the toilet. I had some concerns when the market was collapsing, losing nearly half of its value. My financial guru told my wife and me not to sweat it. “Think long term,” we were told. We have but we’ve also been grateful that it didn’t all that long for our retirement account to recover its losses.

The S&P’s record is just one more indicator that investors seem confident in the future.

If only they could persuade the political chattering class.

Uncategorized

What if feds had done nothing in ’09?

Many of my friends on the right — and the far right — have taken great pains to blast the smithereens out of President Obama’s economic policies.

Namely, their target has been the increase in the national debt, which now stands at $17 trillion. What has run up the debt? It’s been that federal stimulus package the Obama administration pushed forward while the nation’s economy was in free fall.

You remember those days, right? The economy was shedding 700,000 jobs a month; banks were failing; the real estate market was collapsing; the stock market was flushing itself down the toilet.

Barack Obama’s response was a costly one. The Federal Reserve Board reduced interest rates to near zero, making it easier for borrowers to pay back loans, while making it tough on lenders who are in the business of making money on what they loan.

My pals on the right and their Republican pals in Congress keep harping on the difficulties the Obama administration has endured trying to restore the economy.

I keep circling back to this question, which Sen. John McCain in 2008 and former Gov. Mitt Romney in 2012 both ignored as they ran for president against Barack Obama: What would have happened had the feds done nothing, had the government not instituted its stimulus package to shore up an economy that was on the verge of collapse?

I’ll add this follow-up: Why do they dismiss the clear evidence that the economy is in recovery at this moment? Is it back completely? Probably not.

* The job losses have stopped and have been replaced by job gains. Yes, the December job growth was disappointing. But we’ve gained back all the jobs lost during the final years of the Bush administration and the first year of the Obama administration.

* The annual budget deficit, which once topped $1.1 trillion has been cut in half — and is declining. Will we balance the budget by the time Obama leaves office? Probably not but it’s trending in the right direction.

* The jobless rate is at 6.7 percent, down from nearly 10 percent. Has it declined because every unemployed American has found work? No. Many of them have quit looking for jobs but the signs are indicating that opportunities are opening up on the job market.

* The stock market is setting records, which ought to please Wall Street investors — not to mention those of us with retirement accounts that depend on a healthy market.

I’m not naïve. I know there are myriad problems out there. The world is a restive place. Conflicts are erupting all over the planet. The United States is involved actively in a war that it is trying to wind down; we’ve already ended our involvement in another war. We’re killing terrorists almost daily, but the dead ones are being replaced almost immediately by recruits dedicated to waging war against the Great Satan. This war on terror won’t end anytime soon, folks.

Economically, though, I am feeling better about my future than I was, oh, about six years ago.

What’s more, I hate to think how I’d view our future if the government had kept its hands off the economic rudder.