20210601 Why Stimulus Payments? - The Daily Summation

You can be sure there are any number of "cover stories," to explain why the United States has been doling out "stimulus payments."

Maybe there's some reality to them, but for MY part, I tend to believe AT THE VERY LEAST, those in positions of power decided they'd be a good idea NOT as a way to get folks "hooked on government funding" (though I believe there may be something to THAT as well), but to make it so going back to work, looked less attractive than sitting at home.

Why do that? Because it can be argued to be one of the "simplest" ways to DRIVE UP WAGES.

If employers want to get workers back to the job, they'll have to pay them enough to make it so sitting at home is less attractive to going to work.

Keep in mind "augmented unemployment" doesn't help. If people can make more on a combination of unemployment and stimulus checks, than getting off their backsides and going back to work, many will do JUST THAT.

Whether it's an "unintended consequence or not, the "fly in this ointment" is INFLATION.

As people MAKE more (particularly if those people are PRODUCING), the COST OF GOODS AND SERVICES can ONLY GO UP.

That said, imagine the HUGE perceived feather in the cap of politicians, being able to say, "Under my administration, wages went up DRAMATICALLY!"

Too many people think wage increases (rather than taking on more responsibility and corresponding authority), are a grand idea.

In reality, particularly if they're universal, they PRETTY MUCH CANNOT HELP BUT cause inflation.

That's what today's edition of The Daily Summation from Kurt's Religion and Politics is about. Hope you enjoy.

When I'm able to complete the companion article on the Kurt's Religion and Politics blog, I'll post a link to it here.

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