A friend posted a meme on Facebook titled "Trickle Down Economics" and it offers the following facts.
- $2.3 trillion was spent in stimulus this year
- That's $23,000 per working age adult (assuming 100 million such adults)
The meme goes on to say but "you got 1,200 per person & big companies got the rest." The meme wraps up by showing President Trump's signature, clearly intending to hold him responsible for this atrocity.
I did something I rarely do on Facebook. I posted a reply to something political. Here is a version of my answer.
In 2008 when 10 million Americans* were losing their homes, how many people got a check in any amount? No one. Who did get checks in the bailout packages? AIG, Wall Street financiers, and the big banks - all of whom were involved in causing the economic meltdown.
Contrast that with what happened this year, 2020. What happened to the average American:
- Every American with incomes below a certain level received a check
- Those who were laid off received enhanced unemployment - some making more on unemployment than they did at work
- For the first time ever, self-employed got unemployment
- The Federal Government provided mortgage forbearance**
- States have taken action to prevent renters from being evicted
None of that happened in 2008 for average Americans. None of it. And it happened remarkably fast. Media were reporting that Americans would not receive their checks from the Federal Govt. for many months. Instead the vast majority of Americans received checks within weeks. And for people who faced challenges because they had not received tax refunds in the past, the IRS immediately set up workarounds to help those folks get money.
Now let's take a look at the suggestion that rest of the money went to "big companies." That's a lie.
Many smaller businesses received critical funding through the PPP program. I know because the company I work for is one. We are a minority owned business with less than 500 employees. Because of the PPP program, not a single person was laid off after the Coronavirus hit. Not one. That's exactly what the PPP program was designed to do.
Let me be clear. The programs enacted were not perfect. Criticism can be leveled at them. Dead people got checks. Organizations that did not need the money got PPP funds (example: Harvard University).
But let's at least tell the truth when discussing these programs. The government came closer to getting it right in 2020 than it did in 2008 and 2009. The average person got significantly more help this year than they did back then. That's a good thing.
Finally, I addressed the suggestion that Donald Trump is responsible for these programs in two ways.
First, I said saying President Trump is solely responsible is a lie. The $2.3 trillion programs could not have become law without the support of Nancy Pelosi and Chuck Schumer. The Democrats have the majority in the House of Representatives and a significant enough minority in the Senate to have blocked these programs (and they did at one point). And both of those individuals were deeply involved in the negotiations. If you want to blame someone, you have to blame them all.
Second, I couldn't resist adding some sarcasm by saying it is not fair to give President Trump all the credit for these programs that provided better protections for Americans in this crisis than was provided in 2008 and not also credit Speak Pelosi and Senator Schumer. On that last point, I am sincere. They deserve credit for putting aside their obvious dislike for President Trump to do the right thing for the country and work to get the funding passed.
* Source LA Times
** Not only did people not get mortgage forbearance in 2008 and 2009. Guess who was pushing the hardest to kick people out of their homes as fast as possible? Fannie Mae and Freddie Mac - mortgage guarantee organizations who, at the time, were under the complete control of the Obama Treasury Department because the Federal Government had bailed those entities out.
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