What worries me about the small business loans is no over-site. What worries you?

[Aneeda72]

The problem with the “mom and pop” businesses is that they could have been failing already. These loans might go to businesses that would have failed if not for these loans; and it has nothing to do with the virus.

If they couldn’t run their business before,they won’t be successful now. We are just bailing them out of previous debt and wasting money. Any thoughts on this?

 

[Aunt Bea]

Even if the business is failing or is a scam the money will eventually flow through the economy and create jobs for somebody.

The only thing that concerns me about the economic stimulus is that it does not seem to have a plan to reduce the impact on the national debt.

I would like to see a COVID19 sales tax that would help reimburse the local, state, and federal government for the cost of dealing with the pandemic.

 

[Aneeda72]

Even if the business is failing or is a scam the money will eventually flow through the economy and create jobs for somebody.

The only thing that concerns me about the economic stimulus is that it does not seem to have a plan to reduce the impact on the national debt.

I would like to see a COVID19 sales tax that would help reimburse the local, state, and federal government for the cost of dealing with the pandemic.

I would not. But I think there should be a donation line or link where people can donate money to play pay off the national debt, and reimburse whoever for the cost of the pandemic. I saw a donation add on tv for a hospital that if you gave five dollars you could buy lunch for a nurse.

What? Really milking it, I think. Now if they asked me to buy lunch for a janitor, I would consider it.

 

[Em in Ohio]

what worries me is that they didn't even clearly define 'small business' before granting loans to huge national franchises/national chains. Now, they say they will try to get the money back or hope that more franchises and national chains voluntarily return the loaned funds. DUH.

 

[Aunt Bea]

I would not. But I think there should be a donation line or link where people can donate money to play pay off the national debt, and reimburse whoever for the cost of the pandemic. I saw a donation add on tv for a hospital that if you gave five dollars you could buy lunch for a nurse.

What? Really milking it, I think. Now if they asked me to buy lunch for a janitor, I would consider it.

I hate to see Uncle Sam reduced to begging for donations to pay America's expenses.



We ate the steak and we should all be willing to pay for it.

 

[Em in Ohio]

https://finance.yahoo.com/news/public-companies-tapping-small-business-141232524.html

Treasury Secretary Steven Mnuchin on Wednesday questioned whether some big companies receiving millions of dollars in government-backed loans from a program created to help small businesses have met the necessary certifications.

"I think a lot of these big companies [it's] questionable whether they could make that certification," Mnuchin told FOX Business' Stuart Varney. "I think they should review it."

At least 75 publicly traded companies -- some with market values well over $100 million -- tapped the government-backed Paycheck Protection Program, receiving a combined $300 million in low-interest loans, according to a recent Associated Press analysis.

 

[fuzzybuddy]

I can just about manage my own finances, so I wouldn't say I'm an expert of global economies. Are the contributors to party PACS going to hang their loses on the governments door? Oh, yeah. Most of the cash will grow feet, and wind up unaccounted for. In about a year, there will be a Congressional hearing. You know the kind where they will not leave any stone unturned. They will issue an 800 page report that says most of the cash grew feet, and wound up unaccounted for.
Even though it is a massive amount of money, it is not going to offset the shutting down of the economy to save lives, and at the end of a business cycle where we were expecting a slow down anyway, I don't think we can avoid a significant recession.

 

[Don M.]

The only thing that concerns me about the economic stimulus is that it does not seem to have a plan to reduce the impact on the national debt. I would like to see a COVID19 sales tax that would help reimburse the local, state, and federal government for the cost of dealing with the pandemic.

For Sure! All this increase in the National Debt is going to create major financial troubles in the future. Governments have a limit on how much debt they can sustain.....just like individuals...and when the government goes broke, everyone suffers. Check out what has happened in recent years to nations like Greece and Argentina.
During WWII, the US ran up a massive debt, but in the ensuing years the government AND the people agreed to a huge jump in taxes, and within a few years, financial stability was returned. I hope that once this settles down, our people and government accept the necessary responsibility. I'm no fan of taxes, but if they help insure stability for my kids, grandkids, and beyond, I will accept the price.

 

[WhatInThe]

True many of these businesses could've been failing or on the verge but if they were still open at the time of mandated shutdowns technically they should be entitled. I'm more worried about the big national companies taking/getting these loans. Corporate should be responsible for their franchisees not the taxpayers. Only if corporate can't fund them then I would give them stimulus because they are still a small business owner even if a franchise.

Same for some of the unemployed. I've heard stories of chronic unemployed trying to reopen claims deemed finished a year ago but they are using the virus as an excuse they couldn't find a job yet they were already unemployed going into the first of the year.

There will always be scammers or abusers of the system and oversight is needed. But these were supposed to be pretty straight forward and temporary. But as usual they got muddied in politics.

 

[oldman]

Even if the business is failing or is a scam the money will eventually flow through the economy and create jobs for somebody.

The only thing that concerns me about the economic stimulus is that it does not seem to have a plan to reduce the impact on the national debt.

I would like to see a COVID19 sales tax that would help reimburse the local, state, and federal government for the cost of dealing with the pandemic.

That's a good idea, Bea, but if you remember, at one time, there was some talk about a National Sales Tax to help reduce the deficit. My worry would then be once we get this tax, it would never go away and also it would be increased, maybe even yearly.

I am not stating that this is a bad thing for those of us that can afford, say a 1% National Sales Tax across the board on everything, except professional services, like doctors, etc. But, if the government has their way, in 10 years, we could see a 10% National Sales Tax on everything. This is the way the government works.

I wouldn't be opposed to it, so long as it would be restrictive to having a ceiling and just what would be taxed. IOW, if we would start out at 1% and the tax could not be raised above 4% without going to the voters, which is probably a pipe dream, then it may be worth considering. Because truthfully, I don't know how else our future generations will ever be able to get it paid down or off. The money has to come from somewhere.

 

[oldman]

True many of these businesses could've been failing or on the verge but if they were still open at the time of mandated shutdowns technically they should be entitled. I'm more worried about the big national companies taking/getting these loans. Corporate should be responsible for their franchisees not the taxpayers. Only if corporate can't fund them then I would give them stimulus because they are still a small business owner even if a franchise.

Same for some of the unemployed. I've heard stories of chronic unemployed trying to reopen claims deemed finished a year ago but they are using the virus as an excuse they couldn't find a job yet they were already unemployed going into the first of the year.

There will always be scammers or abusers of the system and oversight is needed. But these were supposed to be pretty straight forward and temporary. But as usual they got muddied in politics.

Yes, this is true. I have friends that work at the UC office and they have told me this and also that some are being approved. I work at a food store. Probably the largest chain grocery store in PA. I am 73 years old, which is considered high risk. I could not get laid off because my job is considered a life necessity. I would have been allowed to self-quarantine, but would not be eligible for UC. So, I stayed working. The stores gave all of their employees a $2.00 an hour raise until the state reopens all businesses. Whoopty Do! On weekends, which I do not work, they feed them with Pizzas, Stromboli, etc. No big deal. I don;t eat that stuff anyway.

But anyway, so I am hearing that some people who got laid off and are getting the extra $600.00 a week are making more now than when they were working or are making more than other people who are working doing the same job. I think maybe the government rushed into this without really giving a lot of thought to what they were doing. So what else is new?

 

[Don M.]

But anyway, so I am hearing that some people who got laid off and are getting the extra $600.00 a week are making more now than when they were working or are making more than other people who are working doing the same job. I think maybe the government rushed into this without really giving a lot of thought to what they were doing. So what else is new?

With a little creativity, many people working at minimum wage jobs can find a government program that pays them as much, or more, than they would make working.

 

[Aunt Bea]

That's a good idea, Bea, but if you remember, at one time, there was some talk about a National Sales Tax to help reduce the deficit. My worry would then be once we get this tax, it would never go away and also it would be increased, maybe even yearly.

I am not stating that this is a bad thing for those of us that can afford, say a 1% National Sales Tax across the board on everything, except professional services, like doctors, etc. But, if the government has their way, in 10 years, we could see a 10% National Sales Tax on everything. This is the way the government works.

I wouldn't be opposed to it, so long as it would be restrictive to having a ceiling and just what would be taxed. IOW, if we would start out at 1% and the tax could not be raised above 4% without going to the voters, which is probably a pipe dream, then it may be worth considering. Because truthfully, I don't know how else our future generations will ever be able to get it paid down or off. The money has to come from somewhere.

I'm not really hung up on the mechanics I just believe that we should be willing to pay for the things that we expect the government to provide.

It could be an income tax surcharge for individuals and businesses, a reduction in government spending, sales tax, etc...

Personally I would prefer to just tough it out and not accept money from the government if it means the country will go deeper into debt.

 

[oldman]

I'm not really hung up on the mechanics I just believe that we should be willing to pay for the things that we expect the government to provide.

It could be an income tax surcharge for individuals and businesses, a reduction in government spending, sales tax, etc...

Personally I would prefer to just tough it out and not accept money from the government if it means the country will go deeper into debt.

I don’t mean to prolong this discussion, but just a little information that I have read in periodicals that I have read. The reduction in government spending is unlikely to happen. Even if we pulled all of our troops back tomorrow, the money leftover could be spent to help put kids through college. We all know that they won’t use it to pay down the deficit. An income tax surcharge on individuals has been discussed previously, but now with the pandemic and families hurting, that is also unlikely to be popular in Congress. Lastly, anytime Congress comes up with ideas to raise money, they also come up with ideas on how to spend that money. So, even the National sales tax may not even work.

 

[Aunt Bea]

I don’t mean to prolong this discussion, but just a little information that I have read in periodicals that I have read. The reduction in government spending is unlikely to happen. Even if we pulled all of our troops back tomorrow, the money leftover could be spent to help put kids through college. We all know that they won’t use it to pay down the deficit. An income tax surcharge on individuals has been discussed previously, but now with the pandemic and families hurting, that is also unlikely to be popular in Congress. Lastly, anytime Congress comes up with ideas to raise money, they also come up with ideas on how to spend that money. So, even the National sales tax may not even work.

I get it, it's hopeless!

 

[drifter]

I try not to think about them and hope things work out for every one.