Unintended Downside to Stimulus Checks?

[rosarugosa]

I've been reading concerns on social media about lots of people at the local Home Depot, Lowe's and Walmart. These are hybrid stores selling essentials, but they sell lots of non-essentials too. The concerns are about people buying plants and paint and such, certainly violating the intention of social distancing and only shopping for necessities.
I know some broke people for whom a $1200 check is going to feel like the best thing that has happened to them in years.
It occurs to me that we are going to see a real shopping spike once cash-starved people get this stimulus money. It will be an especially good time to stay home!
It also occurs to me that it's going to be a bit challenging to spend this money in a manner that will stimulate the economy, especially the local economy, while exercising prudent pandemic precautions.

[catherine]

I think there will be vast swaths of people who will use it to keep them afloat in terms of paying basic bills like rent and utilities--my son is in that boat. He is a one of those non-salaried many in the restaurant industry who depends on tips to get by. He's planning on using his for May rent. He has April's saved up, but he lives close to the bone. No debt, but not much savings either. If this takes us out through April, which is probably will, the stimulus will be a godsend for him.

Then there are millions for whom the stimulus is "extra" because they are already salaried employees working through that. It would be interesting to see how people plan to use that. I think if they spend the money, it will stimulate the economy, especially if they spend it at small local businesses.

I'm sure there will be a lot of talk about the "waste" of giving taxpayer dollars to people who really don't need it. I guess that's the fallout in situations like this.

[iris lilies]

What, unintended consequences in a hastily -thrown-together social program in an election year?

I am shocked! shocked I tell you!

[LDAHL]

I think the internet scolds are wrong. I don’t think there was any intention of only using the cash for necessities, else they could have simply issued a few hundred billion in food stamps. I don’t feel duty bound to spend it in some prescribed way. The 25 million they appropriated for the Kennedy Center won’t be to convert it to a hospital, after all.

The intention was to inject a lot of borrowed and newly created money into the economy in an attempt to deal with a sharp drop in business activity without slipping into a depression.

[Teacher Terry]

Ours is going right into savings and won’t be spent unless I need to help my kids. So disgusted with the people shopping for fun at Home Depot,etc. Ugh!

[Yppej]

I plan to save mine in case the economy does not bounce back and I face loss of hours, benefits, or employment altogether.

[Tybee]

I plan to save mine in case the economy does not bounce back and I face loss of hours, benefits, or employment altogether.

Yes, that is what we will do, too.

[herbgeek]

If the purpose is to jump start the economy, I think instead of checks, prepaid debit cards with a specific expiration should be issued. Else, well off people (people with means and/or people who continue to have jobs through all of this) will just save it, as a few have mentioned, and what I will likely do with mine.

[JaneV2.0]

It's supposed to be an aid package to tide people over, not a stimulus package of money that no one needs, intended to spur retail therapy. At least that was the best explanation I heard. Mine will go toward my surprise! property tax increase, probably.

[Tradd]

Mine will go into savings if I've got another job by the time I receive it, otherwise, it will cover my rent ($900) and most of one month's car payment.

[ApatheticNoMore]

It's a legitimate concern for some, I can't even get my elderly mom to stop being obsessed with buying plants she is unlikely to even plant lately. People are bored, what can I say.

But if one is going to binge shop, why not do so online? Still feel bad for the warehouse workers working through this and maybe working sick (would feel MUCH better if we had widely applied sick time!), and so have not ordered a ton myself (yea I've ordered some things online), but clearly it's safer from one's own personal point of view.

I think many people, I know I did, probably spent a few hundred in stocking up for this thing already so it may approach break even at some point and that wasn't even a ton of stock up, didn't know the collapse would be so complete, if only I had closets full of TP! I also bought a desk from Ikea that will be shipped that may or may not make working from home smoother, shrug. I'm using a table now, maybe it doesn't matter, I thought the ergonomics were bad, but only some minor arm and hand pain which I'd probably have regardless. Maybe buy faster internet for work from home. Well hello corona driven purchases! But that exact check, maybe half into the bank, half into investments - wooh, riding the markets down baby!

[LDAHL]

It's supposed to be an aid package to tide people over, not a stimulus package of money that no one needs, intended to spur retail therapy. .

It is that and so much more. It is loans to businesses, large and small, to help them survive the downturn. It is spending to acquire more medical equipment, supplies and hospital capacity. It is patronage for various entities like the National Endowment for the Arts or public broadcasting or the Kennedy Center to ensure our political elite receives the proper level of approval at important cocktail parties. All of this will have a stimulating effect. If some deplorable in Tacoma wants to pick up a can of paint while he’s buying some canned beans and detergent at Home Depot, I don’t have a big problem with that.

[razz]

I think Rosa was considering how one maintains physical distance in the spending. Would the spending increase the violations of physical distance issues thereby increasing contagion? Am I right, rosa?

If one does not need this money to cover expenses due to job loss, etc., one could always consider the food banks to help meet the large increase in demand including families and children right now, just saying...

[Tammy]

No idea what we’ll do other than leave it in the bank for awhile. If family or friends need it to stay housed and fed maybe I’ll give it to them. My work will continue .... no question there.

[iris lilies]

Idle question: those of us already on the government dole, do we get money as well?

[Teacher Terry]

IL, originally you had to have at least 2500 in W2 income to get it but that was removed so you will get it.

[rosarugosa]

I think Rosa was considering how one maintains physical distance in the spending. Would the spending increase the violations of physical distance issues thereby increasing contagion? Am I right, rosa?

If one does not need this money to cover expenses due to job loss, etc., one could always consider the food banks to help meet the large increase in demand including families and children right now, just saying...

Razz: Yes, you read me correctly. I will do any spending or charitable giving electronically (already doing that as I'm sure are many others), but many don't operate that way. I know a lot of folks will be using the money to help make ends meet due to lost jobs and decreased income. I was thinking more of people on SSI or SSDI who barely scrape by. I think there will be a rush from some of those folks to run out and do some shopping.

[Alan]

I think it's silly that my wife and I will likely be receiving money for this. We'll accept whatever we get and eventually spend it but the rationale for giving it to us doesn't add up.

[ApatheticNoMore]

If it was up to me it would all go to the unemployed, but it's not up to me, I'm not a Senator, or even a Senators son, so since a check may be coming to me, I will cash it. Write a congressperson on how the stimulus should be spent? Haha already did that a week or two ago. Got a form letter back :)

[Geila]

I was surprised the salary threshold was so high. $150k for a couple, $75k for single. But if the purpose is to alleviate panic and fear, then it seems money well spent. I do wish there was a special provision for workers who have to remain employed working with the public (grocery stores, delivery people, etc..) And something for healthcare workers who are the most exposed and working the hardest. The greater the risk, the greater the reward, in my opinion.

But hopefully money will flow from those who don't need it to those who have been sacrificing themselves to serve us. A friend does Instacart deliveries and he says his customers have been tipping very generously. I guess the responsibility will lie with individuals in how we spend the money.

[Yppej]

Those unemployed who can make more than when they were working and not have to face the health risks are big winners already. There are people at my job who have underlying health conditions and wish they did not have to come to work, would even be willing to go out on unpaid leave, but they are not being allowed to. If I get something I don't need trust me I will be paying for it in Federal taxes for years to come. It"s not like I'm Amazon making a killing as people can't go to stores now and paying nothing in taxes. GE is also doing well with medical manufacture and not paying any taxes. I miss Sanders, Warren and Yang who would all have made profitable megacorporations pay their fair share.

[iris lilies]

I think it's silly that my wife and I will likely be receiving money for this. We'll accept whatever we get and eventually spend it but the rationale for giving it to us doesn't add up.
The rationale is : panic! Do something! pork!

There is no rationality in one size fits all solutions, which is not to say that many many people don’t need this.


As any good Bernie fan will tell you: for decades you paid into the system now the system is kicking back to you. Or something like that.

I’m donating mine to Bulldog Rescue and I hope to convince DH to do the same. Our rescue group lost a big fundraiser scheduled for Easter weekend. I don’t know how soon that money will get into the economy since it goes to vet bills.

[LDAHL]

I miss Sanders, Warren and Yang who would all have made profitable megacorporations pay their fair share.

Their fair share. Now there’s a term to conjure with.

Makes for such stirring rhetoric with so little practical meaning. Implies such royal power for the chief executive without troubling to consider a constitution built around curtailing royal power. Promises to punish the wicked and reward the faithful.

[Tammy]

We could individually choose to give our check to someone we know who is unemployed.

[mschrisgo2]

Well, slightly different perspective here. My grandson was working for one of the big home improvement stores, specifically interacting with contractors, got laid off because new construction is at a standstill. Got a couple of weeks of unemployment, then got a job at Sprouts. His reasoning- Get a Job quickly in one of the essential services. Now, since he works 32 hours/week, considered full time but paid hourly, people not working at all will have more weekly income on unemployment than he does for the next four months! He is not happy, at all. “So not fair. A guy who works to support his family (girlfriend and 8 mo old son) gets less than a guy sitting on his couch playing video games all day.”

He intends to use his stimulus check to pay off his car loan. That’s the only debt they have. Girl friend works a low pay job, but it provides healthcare coverage, and covers food and diapers. Grandparents cover child care. So his check will cover housing costs and some food, gasoline and car insurance. They will be ok. But the “not fair” part still stings.

[catherine]

Their fair share. Now there’s a term to conjure with.

Makes for such stirring rhetoric with so little practical meaning. Implies such royal power for the chief executive without troubling to consider a constitution built around curtailing royal power. Promises to punish the wicked and reward the faithful.

What do you mean? It's only restructuring the tax code which is probably done every election cycle. We all pay taxes. Rejiggering the tax rate to reflect our needs and our values is not a rebellion of the masses.

[LDAHL]

What do you mean? It's only restructuring the tax code which is probably done every election cycle. We all pay taxes. Rejiggering the tax rate to reflect our needs and our values is not a rebellion of the masses.

Whose needs? Whose values? Is it the President’s role to determine and enforce “fairness”, or should that be left to the legislative process? Why do we freight one office as our arbitrator of values?

[ApatheticNoMore]

I don't think the unemployed are lucky, the flip side to this is compared to people working at work (not at home) they are less at risk of the virus and for high risk people this might be better, yea the 70 year old with a lung condition IS probably better off on unemployment.

But for younger healthier people, yea there is a lot of things that slip people's minds when they say that. Unemployment is not a leave of absence (except if it is and one's job is guaranteed to come back and then awesome, but for many it's not) So like ok your unemployed, you can live off unemployment and it pays well for 4 months. But 4 months goes by, some people easily get new jobs, good for them. But some don't. AND THEN WHAT?

You are fricken unemployed in a fricken great depression. And this is what anyone in their right mind would call lucky? Things could change, but is anyone blind to where this is all likely leading? Your alive, and alive is GOOD, but alive under what conditions? One can assume wonderful economic conditions in 4 months or 6 months or whatever when they decide it's better to go back to work (or whatever we image "lucky" people collecting unemployment are thinking) but what basis do we have to really think so? I mean people without jobs now, I think some of them are going to be without jobs for a long time, 4 months "vacation" looks nice doesn't it, does years of it?

If we were capable of doing like Denmark does, this might be ok. I'm not arguing pushing people to work and die in an epidemic ala Trump and Fox news, which they are going to try to do maybe, and it will KILL thousands at least, they will have murder on their hands by then. I'm saying from an INDIVIDUAL (not public policy) perspective in a country with ordinarily pretty much NO safety net (never mind 4 months of very generous unemployment), what it's like.


We could individually choose to give our check to someone we know who is unemployed.

I refuse to do what is the governments job for them, correctly allocate public spending. That's the government job and I'm not going to take it on myself, it's not my job.

[Teacher Terry]

APN, of course you should keep yours in case you get laid off. People like Alan that don’t need it can give it to a family member or friend that needs it or give it to a worthy cause like IL. We will save ours in case our kids need it.

[catherine]

Whose needs? Whose values? Is it the President’s role to determine and enforce “fairness”, or should that be left to the legislative process? Why do we freight one office as our arbitrator of values?

Yes, it's the legislative body to determine how we pay for what's important to us. Hopefully they make decisions based on the desires of their constituencies.

[Tradd]

The stimulus check appears it will come in time to pay May rent, if the 3 week timeline I read about for direct deposits is correct.

[Yppej]

My parents file jointly and my mother wants to use their $2400 to buy cemetery plot(s) in case Covid gets them later, but my dad thinks she is being morbid and doesn't want to.

[Teacher Terry]

Y, if your Dad is a veteran he can go into a federal cemetery for free and a small cost for your Mom. We secured our spots years ago. My mom and aunt bought theirs and my Mom died 30 yrs later. My aunt is still alive at 95. They were ready when their husbands died. It's smart to plan ahead and takes a huge burden off the kids.

[JaneV2.0]

Y, if your Dad is a veteran he can go into a federal cemetery for free and a small cost for your Mom. We secured our spots years ago. My mom and aunt bought theirs and my Mom died 30 yrs later. My aunt is still alive at 95. They were ready when their husbands died. It's smart to plan ahead and takes a huge burden off the kids.

I don't know about others, but the Willamette National Cemetery in Oregon, where my mother, father, and partner are all interred is lovely.

ETA: 3146

[Yppej]

TT he is not a veteran, and neither is my mother. Jane he lived in Oregon as a boy but has been on the East Coast for over 50 years now. That is lovely though.

[hana]

Spent the past few months researching and trying out mattresses, so part of our checks will go toward a new mattress. The rest will go to the emergency fund. Husband is working from home, so our expenses are covered with enough to support local restaurants to get take out twice a week.