4 ms·
The current problem, right now, is massive deflation. And the fixed costs such as rent, debt, mortgages, utilities that need to be paid while many incomes go to
by PKop 7y ago
The current problem, right now, is massive deflation. And the fixed costs such as rent, debt, mortgages, utilities that need to be paid while many incomes go to 0.
The need is to get people and businesses over the hump, survive this crisis and get to the other side of it in tact.
Now we can can legislate half-measures like rent and mortgage "moratoriums" and such, but that is gumming up the entire financial flow. Much easier to subsidize these payments and let the money flow than adjudicate millions of little friction points, and have tenants and landlords battling each other through no fault of their own, creating bad credit records for missed payments etc. Unemployment benefits can help but even this solution is slow and messy.
A big problem in this whole situation, though, is bailout money is getting handed out. Just not in a uniform manner. And check out who gets "bailouts" and who gets small checks or "loans" (as if more debt is anything but trouble right now). The discrepancy between how different factions are helped, given the huge overall stimulus quantities, is a problem.