I have watched Bill Maher for years. I think he is funny, but after his last foray into ignorant econ 101, I wonder if he realizes he is the new “whiny little bitch” ? We all know Trump is out of his league on most everything associated with being President. Bill Maher often makes fun of him for that reason, although lately it’s become so serious that making fun seems not so appropriate when people are dying as a result of his incompetence. Which beings me to my point. If you don't know enough about a subject you chose to pontificate about, maybe you shouldn’t because it ends up being just as unhelpful as the things you make fun of Trump for doing.
This last show was a prime example. He asks Nancy Pelosi where the money is coming from since we have to keep going back and retrieving money from the “purse”, and one day it will run out. If that's not a whiny little bitch question...I don't know what is. It’s also the wrong question since it’s based on some considerable misunderstanding. So, Bill, because I would rather you know what the right answer is than to be a headline on the Real Clear Politics page that soothes the egos on the right, I’m going to explain it in a way I think anyone can understand.
When you reach into the “purse” of the Federal Government there is a printing press that can crank out the money, all Mary Poppins like...but that’s really old school. The better explanation is you reach in the purse, and there is a cell phone with an app called “The Fed”. Open the app and press some keys and BOOM, you just created 100 million dollars for Mitch McConnell to siphon off of a bill Congress passed to help small business. Tap a couple other buttons in the app BOOM, you just deposited 1 billion dollars into the accounts of several banks to beef up their reserves. One more time, you have a notification pop up on your phone’s “the Fed” app that says Nancy Pelosi moved a bill to help hospitals through the house, it passed the senate, and was signed by Trump and is ready to be funded. A couple taps on The Fed app...BOOM you just sent that amount to the Treasury to fund that law. So, you see how that works...like magic! The thing is...that IS how it works. There is an unlimited amount that can be created (without Google or Apple approving an app) and Steve Mnuchin isn't pacing the halls of the Treasury waiting for your tax check (he has plenty of other reasons I’d think). It is completely unrelated to how things get funded.
But what about the interest?!?!?
The rates on some inflation adjusted notes are currently NEGATIVE. Investors are paying us to take their money. Sweet deal. We should take advantage of that right now don't you think?
The worst part of this Bill, is you are hurting low income families and front line workers that are getting us through this crisis. Saying that we don't have the money feeds a narrative that republicans have been peddling for years (when a democrat is in the White House), or when the spending just might show government to be an effective force in our economy. States have been paying almost the entire bill for the coronavirus response. States don't have a “The Fed” app. They have to balance their budgets and the revenue coming in just stopped. That’s why the Federal Government should be paying these bills. Moscow Mitch says...drop dead blue states. You should declare bankruptcy. Well that's ok if you can do without all of those first responders. The likes of doctors, nurses, garbage men, police, firemen, Teachers, or anyone else that draws a paycheck from the state. Republicans are for low/no government. Drown it in a bathtub! They say its better to depend on the private sector. I don't think there are many that think the private sector has done a very good job and without government leadership, but all the same...republicans sabotage government constantly, and then point and say...see, it doesn’t work! Good ol’ Moscow Mitch got his money for Big Business in the first emergency funding bill, and you know, regular people have to do that bootstrap thing, and states...especially BLUE ones...they don't get money because they are wasteful (and Trump cant punish you with no money if you go ahead and open up...Mafia Donald). Doesn't matter if people are dying, they want so many strings attached to the money that you wont be able to cut them with a buzz saw. Moscow Mitch says “let them eat cake” I’d be happy knowing I can get toilet paper without worrying.