Hi Friends,
The US capital markets closed down today, but are already looking to increase tomorrow with Fed Chair, Janet Yellen, encouraging more stimulus to get to full employment and supercharge the economy.
Personally, I am more of a free markets person and feel that the market should dictate what is successful and what fails, without artificially helping or hindering specific businesses and sectors. With more than half US taxpayers not paying any income taxes, these stimulus measures will put an even bigger burden on the ones paying the taxes. Some programs like PPP have put money into business owner's hands, but they will ultimately pay for it in other ways later. For people getting "free money", there is a lot of appeal, but what is fair about people who pay no income taxes getting an equal say in how income tax revenues are spent compared to those who are actually paying the taxes? Delicate balance and not easy to answer for sure.
All that being said, the stimulus will be good for the stock market and will help things in the US for now, though future generations will be paying for this later and the stimulus is likely to erode the value of the US Dollar - which pill should we take, the red or the blue?
Thanks for coming by,
Brian