Deficit spending for the U.S. is over $3 trillion so far this year and Congress is debating the next trillion-dollar package.
Fed Chairman Jerome Powell is reflected in the sneeze guard set up between himself and members of the House Committee on Financial Services hearing on Oversight of the Treasury Department and Fed Reserve Pandemic response on June 30, 2020 in Washington, DC.Government spending from the Treasury Department and Congress along with stimulative bond purchases from the Federal Reserve are at unprecedented levels.
Yet, as the government spends, debt is accumulating. The Federal Reserve's balance sheet has increased by about $3 trillion this year, and the Fed is encouraging Congress to provide greater stimulus. Many are beginning to ask if more stimulus is the correct response, or is it merely pushing on an economic rope?
Monetary and fiscal spending have not generated significant growth over the past decade. Our current efforts continue to make the same mistakes. There are two primary mistakes: one, while surges of liquidity can stave off economic collapse, and provide needed relief, they have little ability to stimulate sustained growth. When growth doesn't come, policy makers add more stimulus. Two, cheap money has increased supply and done little to increase demand.
Third, it would have been better if the trillion dollars were spent on something that would grow and create jobs and increase over time. This would be the sort of investment that private industry or individuals would make. Think about spending a trillion dollars to take every American to an amusement park. Spirits would be lifted, and folks would have fun, but they'd leave and return to the same old, same old, and you'd be out a trillion in cash.
There needs to be an emphasis on vocational education allied with a broad education. Current educational model is highly deficient. Current economic theory implementation has made wage earner a low paid working slave. That is not sustainable in a responsible economic system.
Honestly next stimulus should include force training on the future Job ( near future ) like coding and all tech and software related . Retail as we know it and many services person to person will die. Not because the pandemic but the advanced in tech . We need ..
Look at the spike in M2 the fed did there QE then credit creation spiked. Money creation has been going to assets for the last 10 years. The jobs ya speak of are few and far between. Most ppl don’t have the brains to do them even with 10 years of training.
Yes let’s help corporations! Screw the workers! They don’t need that $
building a better America is just a bunch of words what the hell does that even mean?
Job training is like stimulus to corporations in terms of free labor, right? Why r these economists intentionally lying abt it anything other than that... corporations already have incentives to train people, and if they r not, it’s their loss... the successful ones already
NO. Let nature take its course.
If you want to fix the economy look at what individuals need to make to actually live. For example where I live 50$ (35-40 hours a week)an hour is about break even. This 15$ an hour bs is an arbitrary number created by people who have long forgotten what real work is
see, that's just another way of giving more economic power to the state and corporations who got us in a mess in the first place by misallocation of capital. give economic power to the people and they will revive the economy by spending on things they need.
Ummm. Powell is not wearing his mask properly. You need to cover your nose Jerome, its an orifice just like your mouth
Please stop sharing photos of people wearing masks incorrectly with articles. I don’t care who they are, change the photo.
Maybe stop the killings in Chicago?
Job training programs don't work. American consumers need money and jobs. America should build green energy infrastructure.
i am sure u know how to wear a mask rite mr powell?
No economy while Covi is here
172,630.... you are dumb if the priority is not to control and eliminate the Virus
Time for infrastructure week?!?!
Give it directly to the people. These “job training” gifts don’t work-they line the pockets of currupt for-profit schools.
He doesn’t even wear a mask correct. Why listen to him at all?
The next stimulus needs to be massive government reform
'Job training' wouldn't that be reopening schools and colleges. But NBC is against that.
Screw that I want to go on vacation!
This is garbage
A focus on the big influential Chinese companies should turn you in the wrong direction. Emmet.
Larry Fink is willing to pay 7% - so what gives, I have good opportunities. 5g and Nokia was recent. Who would be best to buy the likes of Nokia to catch up or even beat Huawei?
If there is to be another stimulus it should be given to individuals to do with as they please.
And what jobs are you suggesting because if I remember correctly, 96% of Americans and jobs before this pandemichoax. cnbc just stfu already
Yeah not by paying lazy Democrats to stay home and collect a check.
Over your nose! Dingbat.
and on prosecuting the trumps in January