That really helps to make sure that pockets of misery that we know exist out there that aren’t touched by more targeted things, that help is provided there as well,” Yellen said. “I believe we’re going to be better off for it, and that it’s the right thing to do.”
The House Budget Committee is set to approve a $1.9 trillion stimulus package that will include $1,400 stimulus payments. The bill will also boost unemployment benefits to $400 a week through August and send aid to local and state governments to contend with the economic fallout from the Covid-19 pandemic. It will also provide funding for Covid-19 testing and includes a measure that will gradually increase the federal minimum wage to $15 an hour.
“The costs of doing too little is much higher than the price of doing something big,” she added. “I really think the benefits will far outweigh the costs in the long run.”
Comments from the Editor: Yellen gives no rationale why this is good for America. She merely makes a declarative statement. Here are some reasons not to do this:
- Ever-increasing government bailouts merely debase the currency and create long-term inflation. Inflation is the enemy of the poor, as only the rich can hedge against currency debasement. This bill makes the rich richer and the poor with their heads barely above water.
- Defeats the idea of a merit-based society. Why people do not have enough savings for a rainy day creates a society that is dependent on the government. It is economic slavery.
- Yellen is basically touting short-term gains and the expense of the long-term financial stability of the country. It is a bad policy.
The full text of the bill is included HERE.