||Last Updated: Mar 24th, 2020 - 08:16:00
Governments worldwide are resorting to draconian policies to force its populace to stay at home in their panic to stem the spread of coronavirus (COVID-19). Seeming to do something, they have not thought (pun intended) of the main reason why most people want to work, itís called MONEY. and money allows people to meet the basic necessities of life, namely food, clothes and shelter.
It therefore follows that channeling work-free money immediately into household hands will eliminate the necessity to go to work.
Questions that arise are who are these people and how quickly can they get access to money?
This is easier for developed countries. Get the credit-card companies to provide the list of customers that have made minimum or no payments in the past 3 months and based on the size of the household fund their accounts directly from government coffers. The multiplier effect is greater when money goes to consumers directly than its trickle-down effect from businesses.
Household debt as a % of disposable income (2018)
For selected countries (1):
A 2019 survey by Bankrate found most Americans would be in a bind if they missed even one pay period and just 40% are able to cover unexpected expenses of $1,000
Consumption increases when people are at stuck at home especially with nothing meaningful to do.
Encouraging people to stay home without immediate money is courting disaster.
Source: (1) OECD National Accounts Stats
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