You Get $1000, and You get $1000

Barbara Schwarz
March 17, 2020 - 3:28 pm

KRLD (1080)- The Trump administration has proposed sending each American adult a check for a thousand dollars. 

It's due to the coronavirus, of course.  SMU business professor Mike Davis says  there's a strong argument to be made for trying to increase purchasing power, the question is whether we could do this in a more targeted way. 

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Some people are suffering, others have jobs that are secure.  "A bartender or someone working in a restaurant, they've got a big, big problem right now.  The only question I would have is do we really want to give money to people like me who don't really need it as compared to people who badly need it."

He says it's going to be extremely hard to target individuals who need the money.  "There's one thing the government really will have to do and that's support businesses that are going through a really tough spot, like airlines, restaurants, hotels and resorts.  If we can support those businesses there's a good chance they'll be able to support their employees."

He says we clearly are entering into a recession.   "There's a strong argument to be made for trying to increase purchasing power. The only question is whether we would be better off doing it in some more targeted way."

Davis says  in normal times he would be worried about a government deficit, but right now it's more than ok for the government to borrow money to keep the economy going.

Treasury secretary Steve Mnuchin said the goal would be to get checks to Americans in two weeks.  Republican Senators Tom Cotton and Mitt Romney have suggested $1,000 per adult.