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Every US man, woman and child went an additional $4.000 deeper in debt last wednesday

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Qubit said:

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Every US man, woman and child went an additional $4.000 deeper in debt last wednesday

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Incorrect.  In the US the tax burden is not distributed evenly, we have a progressive tax.  So most of that debt falls on the rich with very little falling on the middle class and poor. 

I have never had federal tax burden and likely never will (under the current tax scheme).

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Its sad that many people don't understand the scope of tax payers dollars that are being spent.

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Sad indeed.

400 million x 4 = 1.6 billion.

For your plan to work the Government should spend 1600 trillion, a million times more than you calculated.

And alas, it doesnt work at all.

This $1.2 trillion of the original post is created out of thin air and used to buy off real debt.

If you create 1600 trillion out of thin air, the dollar instantly is worth less than the paper its printed on.

But as to taxes being unevenly distributed: this money taxes the US money supply. That means that all Americans will pay for it through inflation. The rich guys yacht, the poor guy's renting of a bowling lane to celebrate his anniversary and the little girl's icecream bought with her hard earned life savings it all goes up in price because this out of nowhere money the Fed created.

The rich guy can afford not to buy a yacht. But the little girl's mother who now can barely support her family cannot afford to not buy groceries. So who pays the hard way for inflation? Those who need most of their money just to get by.

They are not spending money from taxes you paid, they decrease the value of every dollar in circulation and everyone will get the bill for that later. They spend now, you pay later.

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Lana said:

EXACTLY!!    Most people think that the taxes are "evenly distributed".  They definitely are not.  A friend of mine told me this the other day.

There are roughly 305 million US citizens.  For the sake of easy math, lets say that there are 400 million.

If the gov't wanted to implement a stimulus package, they could give each person, their child, their grand child and their GREAT grand child a million dollars and it would be roughly 1.6 billion dollars.

400 million * 4 generations = 1.6B USD

These so called stimulus packages are in the high billions/low TRILLIONS of US dollars. 

Its sad that many people don't understand the scope of tax payers dollars that are being spent.

Lana

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It's sad that many people don't even understand what the fuck they're talking about. 


Sure, if the government gave me, my children, my grandchildren, and their children all $1 - it would only cost 1.6B - but WTF am  I going to do with a dollar.

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An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the U.S. the Federal Reserve acts as the lender of last resort to institutions that do not have any other means of borrowing and whose failure to obtain credit would dramatically affect the economy.



Investopedia Says:
The lender of last resort functions both to protect individuals who have deposited funds, and to prevent panic withdrawing from banks who have temporary limited liquidity. Commercial banks usually try not to borrow from the lender of last resort because such action indicates that the bank is experiencing financial crisis.



Critics of the lender-of-last-resort methodology suspect that the safety it provides inadvertently tempts qualifying institutions to acquire more risk than necessary - since they are more likely to perceive the potential consequences of risky actions to be less severe.

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