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I personally also had a very frustrating experience with the CARES act, specifically PPP loans. Applied as soon as they came out, directly with the SBA first, t

I personally also had a very frustrating experience with the CARES act, specifically PPP loans. Applied as soon as they came out, directly with the SBA first, then with 3 different banks. Still waiting :( However, at the end of the day, businesses are not what's essential, people are. And that's why it's so infuriating that the government has acted pretty much exactly on the opposite view. It has prioritized saving huge businesses and propping up the public markets (stock/bonds/futures/etc). In my opinion, it would have been a lot more effective to give money directly to people, then let them figure out where and how they need to spend it to get through the crisis. Businesses would then adapt accordingly to survive, or fail if they couldn't. But at least then most people would be ok. Now inequality is going to be worse than ever. People that already had a lot of money got saved and now they can keep making loads of money, while the people that really needed saving, pretty much got abandoned instead.

cheez 7y ago
The reason they prop up markets is there is some belief that the Great Depression was made worse by a market crash.
- IgorPartola 7y ago
  Or because the people making the rules stand to lose a lot of their net worth if the stocks they hold tank.
- lisper 7y ago
  The Great Depression was greatly exacerbated by runs on the banks which were in turn exacerbated by the Fed not providing adequate liquidity. The stock market crash was an ancillary effect of the lack of liquidity: everyone needed cash and no one had any. The crash in and of itself had almost no direct impact on the depth and severity of the depression. It was just a reflection of the sudden scarcity of money. Propping up the markets in response to an economic crisis is cargo cult economics, kind of like trying to treat a fever by putting the thermometer in the refrigerator instead of under your tongue.
  - cheez 7y ago
    Just said made worse, no need to write a PhD :-)
themagician 7y ago
If you give money directly to people it disrupts the power system. It gives people options if they suddenly have money that isn’t tied to work. By giving it to companies first you maintain the system of wage slavery that exists for the ~50% who live paycheck to paycheck.
- koolba 7y ago
  Do you really think that giving the same amount of money directly to consumers has any chance of providing a solution that will outlive the hand out period? The rationale of the PPP is to help out businesses forced to close during lockdown so that they’re (hopefully) around to employ people when the lockdown ends. Direct cash might seem more effective in the short run, but it falls apart once the payout period ends. If anything it’d lead to people being less likely to find sustainable work as the null option would be higher valued.
  - ejstronge 7y ago
    I have to say that yours and the parent comment seem to espouse similar points (despite coming from different ideological perspectives). One of the explicit goals of PPP is providing wage support, after all.
  - themagician 7y ago
    You don’t want to give them the option. You don’t want people to realize how bad they may have it or that their is any other solution. You don’t even want them to be able to think about it. That is why we don’t give money directly to people unless it’s a last resort to prevent civil unrest.
Womply 7y ago
You cannot apply for PPP loans with the SBA. You may have applied with the SBA under the EIDL program. If so, you should check your bank account--we've heard from many businesses that the SBA deposited money directly in the past few days.

cheez 7y ago

The reason they prop up markets is there is some belief that the Great Depression was made worse by a market crash.

IgorPartola 7y ago
Or because the people making the rules stand to lose a lot of their net worth if the stocks they hold tank.
lisper 7y ago
The Great Depression was greatly exacerbated by runs on the banks which were in turn exacerbated by the Fed not providing adequate liquidity. The stock market crash was an ancillary effect of the lack of liquidity: everyone needed cash and no one had any. The crash in and of itself had almost no direct impact on the depth and severity of the depression. It was just a reflection of the sudden scarcity of money. Propping up the markets in response to an economic crisis is cargo cult economics, kind of like trying to treat a fever by putting the thermometer in the refrigerator instead of under your tongue.
- cheez 7y ago
  Just said made worse, no need to write a PhD :-)

themagician 7y ago

If you give money directly to people it disrupts the power system. It gives people options if they suddenly have money that isn’t tied to work. By giving it to companies first you maintain the system of wage slavery that exists for the ~50% who live paycheck to paycheck.

koolba 7y ago
Do you really think that giving the same amount of money directly to consumers has any chance of providing a solution that will outlive the hand out period? The rationale of the PPP is to help out businesses forced to close during lockdown so that they’re (hopefully) around to employ people when the lockdown ends. Direct cash might seem more effective in the short run, but it falls apart once the payout period ends. If anything it’d lead to people being less likely to find sustainable work as the null option would be higher valued.
- ejstronge 7y ago
  I have to say that yours and the parent comment seem to espouse similar points (despite coming from different ideological perspectives). One of the explicit goals of PPP is providing wage support, after all.
- themagician 7y ago
  You don’t want to give them the option. You don’t want people to realize how bad they may have it or that their is any other solution. You don’t even want them to be able to think about it. That is why we don’t give money directly to people unless it’s a last resort to prevent civil unrest.

Womply 7y ago

You cannot apply for PPP loans with the SBA. You may have applied with the SBA under the EIDL program. If so, you should check your bank account--we've heard from many businesses that the SBA deposited money directly in the past few days.