A Day Late, and a Dollar Short!
My grandmother would tell me when I was late coming home for lunch – Redneck, you are “a day late, and a dollar short”. You will have to wait until supper for your food.” I thought I understood what she meant back then, but now I have a better understanding. The Corona Covid-19 Virus has wrecked havoc on the United States and the rest of the world. The Federal Reserve Open Market Committee (FOMC) and our US Treasury Department are doing what the US Congress and the President have authorized and directed done to try to help Americans.
It seems though when we heard 17,000,000 Americans have filed for unemployment insurance, major industries like the airlines, restaurants, hotels, and a long list of other non-essential businesses have had to close their doors. Today, the TSA reported yesterday 98,000 airline travelers passed through the security check points at the nations airports. Last year over 2 million cleared through security. The most recent action was the authorization of $350 billion for the Paycheck Protection Program to provide loans to small businesses to continue to pay their employees. The President, based on advice from the Center for Disease Control, the US Surgeon General, and other medical experts announced a 15 day plan to “stay home, work safe” on March 12, 2020. Most state governors then followed with mandates within each state to close all non-essential businesses. The problem is action by Congress in passing legislation giving the President and agencies of the federal government the authority to act was “a day late, and a dollar short.”
The Paycheck Protection Program made funds available at banks and other financial institutions on April 1, 2020. Most small business, mom-and-pop businesses, don’t have the resources to continue to pay employees for more than two weeks before the funds were available. Most simply closed their doors and said “we’re sorry” and let their employees go. Each day for the last several weeks, from the Treasury Secretary to financial experts have given conflicting information about who can qualify, how much can be loaned, what kind of documentation is required, and will the money have to be repaid. Most small business will not have the funds necessary after paying the employees, their rent, and operating expenses in the end. There is no revenue coming in. They say “a day late, and a dollar short.”
Workers can file for unemployment insurance with the state. It seems they will be making more money receiving those payments than when they were working, an extra $600.00 per week. The eligibility time has been extended from the regular 12 weeks to 24 weeks. While well intended from a political and human moral right point, the programs thus far have not reached “main street America.” “A day late, and a dollar short.”
The Redneck can not see an answer to two huge, looming questions. When we have a vaccine to protect the population, and what impact will the actions cost the United States in the future? The Committee for a Responsible Federal Budget recently held a conference call with supporters and reported while the Committee does not support massive spending and deficit financing, the measures taken by the governments are necessary to protect our nation. The Redneck does not see anyone or any agency within the structure of the Federal government capable of monitoring and controlling our current situation. Money will be misused. Money will be doled out to those that don’t need it. Money will be late in coming to most Americans. The question comes back to how will be ever pay it back. “A day late, and a dollar short.”
The Redneck Economist
April 9, 2020