As Treasury Secretary Steve Mnuchin telegraphs that the Administration has reached a deal with the Dems for another round of coronavirus stimulus, I’m asking: do we need it? The short answer is no…and in fact, given the recent success of our economy, more stimulus now would run the risk of more harm.
I explain in today’s podcast. Please subscribe here.
Already, the world is chattering about the potential for the U.S. dollar to lose its status as the world’s reserve currency. Our reckless monetary stimulus policy throughout the last decade has led to mounting concerns that our debt load is simply too severe.
There is a certain amount of responsibility that goes with being the world’s reserve currency yet, reckless spending and money printing from the Fed–coupled with massive stimulus from D.C.–suggests that anticipated inflationary pressures on the dollar might just cause the world to say…”okay, enough!” As such, there could be a migration away from the dollar and into another currency in order to help the world manage trade transactions.
WHICH IS WHY…we must be thoughtful about our spending.
At present, we don’t seem to truly need another stimulus package. Recent economic news has proven encouraging…including the 1.4 million jobs added to the economy last month resulted in a reduction of the unemployment rate from 10.2% in July to 8.4% in August.
Meanwhile, if Americans encounter new incentives NOT to work…such as an additional $600 per week from the Federal Government through year-end, then, why work? While government must do its part to protect those with underlying conditions that make them most vulnerable to coronavirus, we also need to encourage healthy, young individuals to re-enter the economy.
It’s a delicate balance and creativity is needed. Throwing money at a problem is never the answer. What do you think? Scroll down to share your thoughts.