Most people would jump at the opportunity to get two-thousand dollars a month plus a year of rent and mortgage payments free. However, this may become a reality, as Forbes Magazine reports the Democrat plan for more social welfare benefits continues to get richer.
Representatives Ro Khanna (D-CA) and Tim Ryan (D-OH) introduced the Emergency Money for the People Act. This Act, if passed, would provide additional cash payments to Americans who have been impacted by the COVID-19 pandemic.
The Emergency Money for the People Act would provide a $2,000 monthly payment to every qualifying American over the age of 16 for up to 12 months.
Representative Ilhan Omar (D-MN) introduced the Rent and Mortgage Cancellation Act. This Act, if approved, would call for a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic, or up to one year. (source)
I have explained before in the Shoebat archives this would not actually work. In fact, it would lead to a complete devaluation of the currency and the destruction of the value of labor. It would help to bring about the conditions for hyperinflation by printing money to the point of worthlessness.
However, this is not how most people think about money. Rather, they think that it is ‘stuff’ that makes a man wealthy without considering how this is realized, which is that money is a means of communicating value and that while it can store value, it is not necessarily a store unto itself.
People can print as much money as they want- it does not meant that it will have value. Zimbabwe printed hundred trillion dollar bills, but they were only enough to buy a loaf or two of bread.
Value comes from things that are intrinsic, and while fiat currency has a place, if its value cannot be relied upon because the social contract that supported it has broken, it is as worthless as the paper it is printed on.
The US dollar has been dying for a long time, being manipulated to support unnatural gains for the benefit of a few at the loss of the many. While this plan overall is not good, the only thing it will do is to expedite the already declining dollar to its inevitable end, and while this is not good overall, it is also not good to allow for the currency to keep being manipulated in a deflationary depression that is manipulating prices and preventing a real economic recovery from taking place.
There is no good answer. At this point, what matters most is the long-term help to the American people, who knowingly or not have suffered and continue to be abused under the yoke of horrendous monetary policies whose end is long overdue.