Joe Biden hailed “one more giant step forward on delivering on that promise that help is on the way” after Democrats took a critical step towards a first major legislative victory since assuming control of Congress and the White House, with a party-line vote in the Senate to approve a $1.9 trillion coronavirus relief bill.
Biden’s FDR moment? President in New Deal-like push that could cement his legacy.
After a marathon voting session through the night on Friday and into Saturday afternoon, Democrats overcame unified Republican opposition to approve the sweeping stimulus package. The final tally was 50-49, with one Republican senator absent. $1.9 trillion sounds like a lot, but some of our chosen (selected) politicians wanted much, much more. See Biden below (what is Kamala doing?).
Is it a moment to be “hailed?” Well, at a high-level, let’s breakdown the running cost of all these COVID19 stimulus bills and other government “helps.”
- As of October 1, 2020, roughly $2.59 trillion in new budgetary resources have been made available for federal agencies to respond to the pandemic. Agencies can use this funding for contracts, grants, loans, and other assistance, as well as direct payments like the Economic Impact Payments (EIP) appropriated in Phase 3 – see here the breakdown.
- On Dec. 21, 2020, the U.S. Congress passed a $900 billion stimulus and relief bill attached to the main omnibus budget bill. President Trump signed the bill on Dec. 27, 2020, but he urged Congress to increase the direct stimulus payments from $600 to $2,000 – see here a further breakdown.
- A $1.9 trillion Covid-19 relief bill seems to have passed and has become law. It will provide the third round of stimulus checks — after the $1,200 payments last March and the $600 payments in the December bill signed by President Donald Trump.
- The Federal Reserve has pumped all kinds of stimulus as well into the economy. This not only includes special low-interest rates for those who can get loans (mostly the wealthy) but an actual cost to Americans by increasing its balance sheet by government debt “Kabuki” theater. So far, this has totaled nearly $3.450 trillion – see here and chart below.
- All this is on top of various other relief programs and costs to the economy (e.g., local stimuli, eviction moratoriums, special loans, job loss, business loss, etc. …) that have additional untold costs to born by the US taxpayer and citizens – see here.
So adding up what we know in terms of COVID19 government relief costs totals about $8.84 trillion. Assuming about 200 million adults living in the US, 47% of Americans are not paying taxes, and these COVID19 stats – let’s break it down to what this means to the average US citizen.
- $44,200 per US adult citizen.
- $83,400 per US taxpayer.
- $298,000 per US COVID19 case.
- $16.46 million per US COVID19 death.
Do these stats make any sense? US citizens did (will) get a couple of small stimulus checks – but one needs to ask a question. Did you or someone you know received a check for $44,200 from the government? No, I didn’t think so.
This is “help on the way?” Did not your parents teach you anything in life? There is no such thing as a free lunch. Every bit of this money will be paid back one way or another. How? Currency debasement – the printing of money leading to hyperinflation – see more here, here, here, and here. The rich can hedge this position with assets. The poor can not. The rich will get richer, and the poor will get poorer. But unfortunately, we are preaching to the politically deaf. We, as Americans, have sold our futures for a few morsels of bread. And let us not forget the complicit bakers in the sale – the media.
— Dan O'Donnell (@DanODonnellShow) March 7, 2021
.These politicians and elites are robbing you.
Do you believe that this the end of COVID19 relief stimuli and packages? Hardly, this is just the beginning. We shall keep tabs on this story and make updates as the COVID19 economic nightmare unfolds.