We have three children now; ages 6, 3 and 7 months.

I just found out that the Democrats worked some sort of voodoo with the Child Tax Credit and raised it significantly PLUS plan to pay out half up front this year. In our case we will receive $5,100 “free” from Uncle Sugar this year just for having children.

While it is nice to have extra money like this, and God knows we could use it around the house, I just wonder where this all ends? I fear inflation is going to get out of control very quickly with all of this “free” money hitting the economy.

And you know a lot of these dumbass people are going to run out and buy a 75 inch TV instead of buying a better bed for their child or fixing up their house.

And all of this “free” money it’s just being printed out of thin air, in the long run we are screwing ourselves.

Lastly, how the EFF is this not vote-buying by the Dems? You know full well when this comes up the Dems will highlight how much money they gave Joe Schmo and how the evil stingy Republicans want to take all that away.

Last question first, this is absolutely vote-buying, but it's not just the Dems... The first "stimulus" I ever got was from Bush, and Trump pushed it as well.

As for where does this all go? I see government led programs to drive automation leading to less and less workers actually producing, leading to a government push for heavily taxing the production lines to disburse a "minimum living wage" for doing nothing.

Think Heinlein's "For Us, the Living: A Comedy of Customs" for an example of what that could look like (if done correctly).

Where does it end? Massive inflation and descent into Third World Shithole status.

Doesn't HAVE to be that way, but if it isn't stopped, and soon, it will be.

Although its nice, I'd rather not have it at all. I suggest investing it into worthwhile things. Mine has gone to paying bills and buying more rifles, lol.

Short term, most likely manifesting as increased inflation, leading to increased interest rates to combat the inflation acceleration, leading to a slowdown in overall economic growth (while hopefully not killing it altogether).

Long term remains to be seen. It'll partly come down to what extent the Federal Reserve manages to finesse it, using interest rates to attempt to minimize runaway inflation without totally killing off economic growth. Too much either way would be bad - low inflation but economic shrink vs. economic growth but high inflation.

And the double-whammy of stagflation, where economic growth stops while at the same time inflation continues to run rampant (ala the late 70s/early 80s) would be really bad, because then there's not a good way to fix one without making the other much worse. That's the most likely "worst case scenario", in my opinion. There are ways to attempt to correct it, but it really hurts... Like the ultra-high interest rates of the early 1980s. It worked, but the cure was almost as bad as the disease.

However, if they do manage to successfully thread the needle between controlling the rampant inflation and allowing for economic growth, it could turn out relatively okay. But I do think that either way it's going to suck to one extent or another in the short term, as they're unlikely to get it exactly right, so there will be some of one problem or the other to contend with.

This message has been edited. Last edited by: RogueJSK,

To Gibb's point, we have to manufacture stuff. We need to produce. Everyone can't sit in their home office on a computer. Service jobs aren't sufficient to maintain an economy.

Rogue, I love you brother. But if ever there was was a post to put lipstick put on a pig. Your's is it. To put it mildly

Younger folks who wish to learn from the past should spend some of their time going through Reagan's speech archives. Newsmax had a show on the other night that was great on hiliting some of his speech's on the economic differences on what he believed in vs what carter and his cronies put the country through.

While we need some civil servants. This country was never intended or built on the backs of government or the servants it employs.

It was and is made up of the hard working, freedom loving men and women who build and fuel the economy of the US.

We enslave them when give them $ and or goods and ask nothing but loyalty in return.

Thinking it ends just before the currency devaluation.

Just remember, the government has no means of generating income other than extracting it from the tax payers (people that actually work and pay taxes) and a meniscal amount from tariffs. Other than that it's borrow and create more national debt just like a person just running up the credit card because they want shit. So these generous gifts you are receiving will be paid for by others. Of course I'm not pointing the finger at you... get what is legally coming to you for sure, otherwise someone else will grab it down the line.

Folks this is going to come to a head in the next 5-7 years or so and our kids and grand kids will be much worse off than we where which is just the opposite as it's supposed to work.

quote:

Originally posted by old rugged cross:
Rogue, I love you brother. But if ever there was was a post to put lipstick put on a pig. Your's is it. To put it mildly

Rather than merely throwing whimsical jabs, if you have specific responses or counters to my points, I'd love to hear them.

Simply put Rogue. If you think the feds can make something better or fix something that they created I have a little news for you.
Virtually anything they do or have done is pretty much a mess.

That is my "putting lipstick on a pig" for you.

But I understand that many folks rely on them and think what they receive they deserve. And they do, to some degree for their loyalty and vote.

Like it or not, that is how the Federal Reserve will approach it. Just like they've done in inflationary periods in the past.

Reread my post. I'm not saying it's all going to be puppies and rainbows, but I also don't believe that everything is automatically doomed to abject failure just because it's "the gubberment". There will be some economic disruption, for sure, to one extent or another, depending on a lot of different factors. But society isn't going to collapse, and we're not going to end up using 100 Trillion Dollar bills to buy bread like Zimbabwe or Weimar Germany.

No, it is a doomed failure by your fed gubers. There is nothing "short term" about any of this. Many think our national debt will just melt away and does not matter. Who holds the debt?
Why do you think we have the issue's with the prc and where do you think it is headed. This is not just some fairy tale about the printing press running overtime for a few months.

This message has been edited. Last edited by: old rugged cross,

My take on it. I think this ends right on the door step of your 401k and other retirement accounts. Makes me want to puke when I think about it. But, I can guarantee this has made the short trip through every democrat politicians lizard brain at least once.

I have a very educated friend (retired urologist) who tells me America and the dollar is too big to fail.

Every time he says this I think of two things.

1. Pride cometh before a fall.

2. History has a way of repeating.

I haven't a clue where or when all the "free money" will end. But for now, don't beat yourself up about receiving and putting to use the child tax credit. This, the payments to individuals and the loans to small businesses are paltry, a drop in the bucket, compared to where the rest of the money is going. The National Endowment for the Arts, Planned Parenthood and the others that - by some accounts - 91% of this stimulus bill is going to don't need this money. That part is what pisses me off.

I’ve read that negative interest rates are already hitting some places in Europe, so it’s destined to hit here too, most likely sooner rather than later. Especially with this latest “stimulus” bill.

It’s crazy to think that it’s likely soon going to cost us money to hold our money in the bank. When that happens everyone is going to want to pull all their money out all at once....then it gets really interesting.

Think how great and prosperous this nation would be if all that money stayed in the hands of the hardworking people who earned it?

Instead of flushing it down the toilet they'd invest it, create businesses and prosper over and over.

There is no free money.

quote:

Originally posted by jhe888:
There is no free money.

Which is why I put that in quotes...