And now for something completely different. Been sitting on this thought for a while. Preface that this is speculation, and I’m not claiming to sell hopium. I don’t know what POTUS is going to do with the debt crisis or how to jumpstart the economy after the Wuhan flu bs. But, I offer this analysis for consideration.

If POTUS were to announce a debt reset/forgiveness campaign, there would be obvious benefits. Exs. Young people burdened with student loan debt that’s preventing them from getting ahead would be immediately relieved so that they’re meager earnings from starting jobs would go to them instead, causing an increase in wealth. Same could be said for those who pay mortgages. High credit card debt relief would also put more money into the pockets of everyone. It would be a great boon to POTUS’ support as more people on the fence would probably rethink their attitudes towards him, as we saw in portions of the black community after the first round of stimulus checks was sent a couple months back.

Several problems arise from this strategy, though. One, it’s not equitable. Not everyone has student loans, mortgages, or uses their credit card like a drunken sailor in a Thai liberty port. Also, not everyone has the same debt amounts, with many people having spent months/years paying down or paying off their debt like responsible people. The optics of those who never paid or took responsibility for their debt getting relieved at a greater amount than those who have taken responsibility and paid could be mixed for POTUS. It also doesn’t solve the problem of people not getting into debt again with high interest rates that would only lead people right back to where we are. Lastly, just because the debt magically vanishes, doesn’t mean people will suddenly have money to spend. With the majority of Americans not even having three months’ worth of savings in the bank, the lack of liquid capital is only going to drive people back to racking up debt if you push them to go out and spend to jumpstart the economy.

So as I see it, debt reset/forgiveness is a one shot event that will provide immediate, tangible relief, but doesn’t address the long term issues of usurious interest rates and appropriate use of credit vs saving up for or working to pay for something. It would be like resetting a car’s odometer but leaving the engine with 200,000+ miles on it. It may go on for a few more miles, but the problems associated with the engine didn’t disappear with the reset.

Continued in part 2 (yes, “So Much Text” fags, I’ve got a lot to say. Bite me.)

>>9732849

So, what about sending out another round of stimulus checks? POTUS has said recently he’s game for another round and at a greater amount. The inflation crowd and national debt worriers are concerned, but in my opinion, giving everyone stimulus checks will have nominal effect on those two areas, and I suspect POTUS will move the country back to a gold standard, which will leave both those group’s points moot. Stimulus checks would be beneficial in jumpstarting the economy, providing people liquid capital to spend immediately.

But, like the debt relief/forgiveness plan, it’s only a short term remedy. There is still tons of debt that will continue to bog people down. If POTUS does cut the checks, they should be for substantial amounts, north of $10,000 per person for there to be longer lasting effect. Arguably, I would say if you cut everyone a $50,000+ check, you could solve the majority of the debt crisis while also providing a little extra spending money to jumpstart the economy. Yet, then I remember that humans are humans, and people probably won’t be responsible in paying down their debt, and Cadillacs will probably become the #1 car dealer among certain demographics. In other words, just because you give everyone checks, doesn’t mean people will start acting responsible and they’ll probably piss most/all of it away on frivolities.

I haven’t even touched on the issue of what free money does to the human psyche. Just look at all the welfare queens and kings that expect monthly handouts rather than work. If these checks are cut with no real opening of the economy in the entire country (not just pockets of opening like in red states) then all these checks will do is incentivize people to stay at home and wait for the gub’mint to pay them. People need to get back to work for these checks to have any long lasting beneficial effect (that is what I believe POTUS is setting up with the revoking of H1B visas recently, to get Americans back into the workforce).

I’m not saying not to use these tools. But rather trying to tamp down the hopium crowd that say by doing this the economy will come rip roaring back and everything will be great and love Trump and he’ll get reelected and…you get the picture. If POTUS wants to really reset the economy, he can certainly use these short term measures, but needs to add some long term ones as well such as: capping interest rates for credit accounts to prevent usury; reform or get rid of the student loan program to tamp down the astronomical costs of tuition, and possibly include some price caps for tuition while we’re at it; reinstate and make mandatory home economics in public school curriculum to teach future generations to be fiscally responsibly; lower or eliminate the personal income tax, or declare a tax holiday (this is short term); and, get off the fiat currency system for one backed by something tangible (precious metals, cryptos) that would mostly prevent the inflation we’ve seen since we left the gold standard and make add needed stability to our currency. Without any long term reform, any short term plan will be a flash in the pan and we’ll be right back where we are, and I suspect POTUS knows this. No idea if anything I discussed regarding the debt relief or stimulus checks will happen, has been discussed, or is even on POTUS’ radar, but it’s been bugging me for some time.

Just my two cents.