Via Economic Policy Journal

I don’t know when the deflationists are going to finally say “Uncle” but if the Emergency Money for the People Act passes, they just might. 

Zack Friedman informs:

Representatives Tim Ryan (D-OH) and Ro Khanna (D-CA) introduced new congressional legislation — the Emergency Money for the People Act — to provide $2,000 cash per month to eligible Americans until employment returns to pre-COVID-19 levels.

Emergency Money For The People Act

If passed by Congress in its current form, the Emergency Money for the People Act would work like this:

  • Eligible Americans would receive $2,000 in cash per month guaranteed for at least six months.
  • These monthly cash payments would continue until the employment to population ratio for people ages 16 and older is greater than 60%.
  • The monthly cash payments would not count as income.
  • The monthly cash payments would not adversely impact anyone’s ability to qualify for an income-based federal or state assistance program.

Who Would Be Eligible

As with the $1,200 stimulus check (Economic Impact Payment), not every American would be eligible for a stimulus check under the Emergency Money for the People Act. Here’s who would get a monthly cash payment under this legislative proposal:

  • Every American adult age 16 and older making less than $130,000 annually would receive $2,000 a month;
  • Married couples earning less than $260,000 would receive at least $4,000 per month;
  • Qualifying families with children will receive an additional $500 per child, with funds capped at a maximum of three children.
  • College students and adults with disabilities who are still claimed as a dependent would be eligible. The individual would receive the monthly payment and their parent or guardian would receive the dependent credit.
  • Individuals who are unemployed or who had no earnings would be eligible.

Individuals who were not eligible based on 2018 or 2019 tax returns could be eligible based on 2020 adjusted gross income by submitting two months of consecutive paychecks.

Does anyone seriously think that with the current money giveaways that price inflation isn’t going to roar?

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This new proposed giveaway would surely top them all. With current unemployment payouts averaging around $1,000 per week and with an additional $2,000 a month that would be a tax free $72,000 per year. Who would work? How would unemployment ever return to pre-covid levels? These payments could go on forever with fewer and fewer products and services entering markets. Less product and more money demand is a prescription for higher inflation.

Is a majority of Congress clueless or mad enough to pass this thing?

Hug your gold coins tonight.