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I (sincerely) wonder - what would happen if USA were to receive such a short-duration windfall? Will it be socked away in a rainy day fund, or will it be spent
by RestlessMind 10y ago
I (sincerely) wonder - what would happen if USA were to receive such a short-duration windfall? Will it be socked away in a rainy day fund, or will it be spent immediately in terms of infrastructure programs, or welfare programs or tax cuts/rebates?
In fact, California experienced such a windfall due to rising stock prices in recent years, and Jerry Brown had to fight with the legislature to save that in a rainy day fund instead of spending on welfare programs.
- hansjorg 10y agoSee e.g.: https://en.m.wikipedia.org/wiki/Alaska_Permanent_Fund https://en.m.wikipedia.org/wiki/Alaska_Permanent_Fund The fund pays a yearly dividend to permanent residents. The article also mentions that one of the reasons for setting up the fund was dismay with how the initial $900 mill. of oil income was spent.
- mbrameld 10y agoNow research the current state of the fund, there is a bit of controversy going on right now. The governor has unilaterally limited the payout this year and a lot of folks aren't happy.