November 12, 2020
Biden’s COVID-19 Task Force Plan… Pay People to Not Work
The votes are still being tallied, recounted, and disputed in some key states, but that hasn’t stopped Joe Biden from planning his next moves.
For small-business owners and our economy as a whole, some of these next moves could prove quite troublesome.
If Biden’s team is successful, our nation could ultimately usher in an era of big government unlike anything seen since the Works Projects Administration (“WPA”) of the 1930s. Of course, back then, FDR initiated a government program that actually entailed work.
The suggestion currently being floated by Biden’s associates is literally the antithesis of work…
Indeed, according to the newly minted member of Joe Biden’s coronavirus task force, Dr. Michael Osterholm,
We could pay people to lose their jobs.
You read that correctly… Dr. Osterholm said that during an interview with the Left-leaning mainstream cable news channel MSNBC this week.
According to Osterholm, a director of the Center for Infectious Disease Research and Policy at the University of Minnesota, the only way to control the coronavirus infection is via a full-fledge lockdown… “We need to lockdown to drive the infection levels lower.”
He’s joined in his proposals by someone who ought to know better, but then again, that someone works for the Fed. He is president of the Minneapolis Federal Reserve Bank and, as I’ve said repeatedly, the Fed always assumes (wrongly) that it can control our economy and human behavior.
Neel Kashkari, of the Minneapolis Federal Reserve, and Osterholm, co-wrote an opinion piece in the New York Times in August arguing for, as Osterholm says, “a lockdown to drive this infection level to a place where we can actually control it.”
The duo wrote…
To successfully drive down our case rate to less than one per 100,000 people per day, we should mandate sheltering in place for everyone but the truly essential workers. By that, we mean people must stay at home and leave only for essential reasons: food shopping and visits to doctors and pharmacies while wearing masks and washing hands frequently. According to the Economic Policy Institute, 39% of workers in the United States are in essential categories. The problem with the March-to-May lockdown was that it was not uniformly stringent across the country. For example, Minnesota deemed 78% of its workers essential. To be effective, the lockdown has to be as comprehensive and strict as possible.
If we aren’t willing to take this action, millions more cases with many more deaths are likely before a vaccine might be available.
Of course, it does seem a vaccine could begin distribution as early as the end of this month, given the success of Pfizer’s phase 3 trials.
Nonetheless, the Biden camp has its view…
In addition, the economic recovery will be much slower, with far more business failures and high unemployment for the next year or two.
The path of the virus will determine the path of the economy. There won’t be a robust economic recovery until we get control of the virus.
Hey guys! Did you see the third-quarter GDP report with the most growth ever recorded?! 33.1% annualized – and unemployment has fallen to below 7%, a level most economists assumed couldn’t happen until next year at best!
In other words, Americans are making this work… on their own. Without the help of a massive “lose your job” program.
It is mind-boggling how some want to use this pandemic as a way to create more dependents. Granted, it’s horrendous and truly heartbreaking that we’ve lost so many Americans… more than 230,000 now.
But, the answer isn’t to lock down the country and pay every worker to stay home. Does Biden’s COVID-19 advisory team need a reminder of the fear and anxiety the last lockdown brought to this country?
We need to be strategic, something the Governor of New York failed to be during the height of this crisis. Instead of protecting the elderly and the most vulnerable, Cuomo shut down his state. Young, healthy workers were prevented from going to work… while simultaneously, his state sent those recovering from COVID-19 directly into nursing homes, thereby exposing the most vulnerable members of society!
Truly, the stupidity of the move is unforgivable, yet the mainstream media holds Cuomo up as an example of strong leadership. Go figure…
The worst thing that could happen to our economy right now is for there to be another shutdown… which is exactly what Biden’s COVID-19 task team is advising. Our economy is just starting to return to normal… And although rising COVID-19 rates are concerning, we should recognize that, per studies conducted at New York University as well as overseas in London, death rates have declined considerably among all groups, including those with pre-existing conditions and the elderly.
With the economy growing at historic levels and the unemployment rate plummeting at a record descent – why reverse course now?
It’s clear business owners are growing worried about what might be… according to this week’s NFIB Optimism Index, owners feel confidence in current conditions. The index remains at a high of 104 for October, which is unchanged from September’s historically high rating.
However, uncertainty has picked up… The NFIB’s Uncertainty Index read of 98 shows a 6-point increase attributable to election concerns as well as fear of future government mandated shutdowns. Meanwhile, business owners expecting better business conditions over the next six months declined.
Business owners are right to worry. Given Dr. Osterholm’s new comments, it’s clear that even with a vaccine in the works and improved hospital conditions, a full-on lockdown is still on the table – despite the high costs to society.
The solution? Borrow more money, according to Osterholm. The savings rate, he says, has gone from “8% to over 22%. We could borrow the money from ourselves at historically low-interest rates, we could pay people to lose their jobs. We can pay small businesses. We can take care of city, state, and county governments.”
Lockdown and borrow.
All I can say is I sincerely hope not. Because if that’s the doctor’s prescription… then get ready… Socialism, here we come.
These are pivotal times… And next week, you won’t want to miss our November election edition of American Consequences magazine. I will have an in-depth look at “the Squad’s” attempt to take hold of the Democrat party and the danger they represent to our American economic values.
Episode 9: Recount? Conservatives Aren’t Giving Up
- The race isn’t over – Trish and special guest Ned Ryun break down the next steps for Trump’s campaign.
- KT McFarland calls for open ears from Democrats as the election results continue to divide the country.
- And has any voter fraud happened before? Sean Parnell recounts his own experience with vote counting.
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Executive Editor, American Consequences
With the Editorial Staff
November 12, 2020