Aid now, stimulus later

CONGRESS SHOULD CRAFT TARGETED AND WELL THOUGHT OUT PLAN

DEBIT CARDS, NOT CHECKS

Congress is now negotiating a plan to keep the economy from collapsing from the restrictions being enforced to combat the Coronavirus pandemic. This is an appropriate response to a unique situation that has been mostly caused by appropriate government action. This should be a two part response with the immediate first part aimed at aid to the unemployed and affected businesses.

The first part concerning the unemployed should be carried out by the existing state unemployment funds. These funds should be in good financial condition after several years of record unemployment rates. These funds could be supplemented and augmented payments with additional money from the federal government. The infrastructure is already in place and ready to go. 

The other immediate need is help those businesses forced to shut down. This would be restaurants, aviation and cruise ship business and also others in the effected states. This could take the form of debt and mortgage payments and overhead costs until these restrictions are lifted. This would be for several months and could be extended month by month.

The next part would be a stimulus package. This should not be implemented until the restrictions are lifted and business is allowed to resume. Throwing stimulus money into an economy that is shut down would be a inefficient way of creating a stimulus to the economy.

This should take the form of a debit card with a 60 day expiration. Spend it in 60 days or lose it. Rather than 1 large infusion, send out smaller infusions every 30 or 60 days, until the economy gets going. This could have similar restrictions as access cards and important data would be acquired as to its effects. If people feel that they don't want it, they can just let it expire. 

Congress should not feel they have to act in a rushed and panicked way. Do the first part to aid workers and business, then prepare for the stimulus when it will most be needed and be most efficiently used.

They have it right in sending money directly to citizens, rather than sending it to state governments that in the past have used the money to pay government workers and delayed using the money for years. It did not create the stimulus that was needed.

The economy is fundamentally strong. These measures should prevent the health crisis turning into an economic crisis.