G.F. Brandenburg wonders where the $2 trillion is going.
A retired math teacher, he did the numbers. If every American gets $1,200, that’s $400 billion. That’s 20%.
Who gets the other 80%?
Politico reported on April 8 that Trump insists that there be no oversight of the $2 trillion.
Apparently he thinks it was appropriated by Congress solely for him to dispense as he wishes.
WATCHMEN — As the Trump administration begins pumping trillions of taxpayer dollars into the economy, none of the built-in oversight mechanisms are even close to functional, Congress reporter Kyle Cheney writes. Congressional leaders have appointed just one of five members to a commission meant to serve as lawmakers’ eyes on Trump administration decisions for a $500 billion fund for distressed industries. An inspector general nominated by Trump intended to provide a second check has already generated controversy among Democrats, and the president’s sidelining of the chairman of a third independent overseer set back the one mechanism that appeared on track.
Friends? Family? Cronies? Campaign donors?
The potential for massive corruption is worse than you can imagine under a president with a long history of bankruptcies, tax evasion, stiffing creditors, and bending the rules to benefit himself, his family, and his company—and Republican Senators are his willing accomplices.
This was in Politico yesterday:
THE CORONAVIRUS crisis has brought to the fore two trends that, when put together, are a tad alarming.
GOVERNMENT IS GROWING, and becoming far more crucial in our everyday lives.
— JARED KUSHNER is in the middle of discussing a plan to track what health care we are receiving. … THE TREASURY is doling out checks to families and individuals. … THE SBA is giving grants to businesses to help them cover payroll. … THE GOVERNMENT has the ability to take a significant equity stake in one or more of the nation’s airlines.
YET, GOVERNMENT OVERSIGHT is shrinking.
— THE PRESIDENT has fired two inspectors general, and, if you believe reports, is planning on firing more. … THE ADMINISTRATION has routinely flouted subpoenas for appearances and documents. … SENATE REPUBLICANS have shrunk from checking the president.
THE KIND OF INTERVENTION into the economy that we are seeing right now typically requires stringent oversight over many years. KYLE CHENEY writes that “none of the built-in oversight mechanisms are even close to functional.” ANDREW DESIDERIO reports on a bipartisan group of senators asking Trump for answers about the intelligence community IG firing.
— AND NOW THIS: “Recovery bill allows the Fed to spend billions without keeping records,” by Maggie Severns and Victoria Guida: “Tucked into the recent recovery bill was a provision granting the Federal Reserve the right to set up a $450 billion bailout plan without following key provisions of the federal open meetings law, including announcing its meetings or keeping most records about them, according to a POLITICO review of the legislation.
“The provision, the existence of which has not been previously reported, further calls into question the transparency and oversight for the biggest bailout law ever passed by Congress. President Donald Trump has indicated he does not plan to comply with another part of the new law intended to boost Congress’ oversight powers of the bailout funds. …
“The changes at the central bank – which appear to have been inserted into the 880-page bill by sympathetic senators during the scramble to get it approved — would address a complaint that the Fed faced during the 2008 financial crisis, when board members couldn’t easily hold group conversations to address the fast-moving economic turmoil.”
Here is a constructed response question:
Why does the Trump administration want little oversight as it dispenses $2 trillion in aid? Why are Senate Republicans agreeable to Trump’s removal of independent monitors in government agencies?
Diane Ravitch's blog 
A$2 trillion will be just the tip of the iceberg.
As with the bailout in 2008 (which amounted to trillions, not just the $780 billion of TARP) a lot of money will effectively be dispensed by the Federal reserve in the form of zero interest loans and other “quantitative easing”(aka, handouts to the rich) and will end up being much more than $2 trillion. And because of the secrecy of the Fed we may not ever even know how much money was dispensed.
As George Carlin said, it’s an exclusive club and you aint in it.
I worry about this A LOT.
one billion to the cause, nine billion to private pockets. SHHH, it’s a secret
I’m sorry but Diane this is a bit off…Let’s think about this. First NOT every American is getting $1200 (there are wage limits on who would get the money and who would not). Second, the money in these packages is being used for loans for small business, can be used to help start-up the business that in many cases are being shut down, can be used to help pay for medical leave made accessible by the Families First Coronavirus Response Act (where families can get 2/3 of their salary for taking leave – up to 12 weeks – when their children are out of school).
“First NOT every American is getting $1200.” Correct. Children, for instance, are only getting $500. Taxpayers who earn over $99,000 single/$198,000 married are getting nothing. So that means the money going to individuals is actually less than 20% of the bailout.
One problem with the bailout is what exactly is defined as “small business”. You may be thinking of that family owned restaurant down the street from you or the boutique clothing store, but an awful lot of that money will end up in the pockets of surprisingly large “small” businesses.
Another problem is that a lot of the money is going to bail out industries that are already very profitable and have not used substantial portions of those profits to help their employees. Airlines, for instance. As we saw in the 2008 bailout, there is very little restriction on that money going into the pockets of already wealthy executives in the form of bonuses, etc.
But, as the article points out, the biggest problem is simply that there is no oversight on where most of the funds are going. Individuals and families are being strictly means tested, even though a lot of lower level professionals have also lost their jobs and still have mortgages to pay and families to support. But businesses (the larger and more powerful especially) will be able to gobble up that money whether they need it or not, with very little provision that that money make it’s way to the workers who made their fortunes possible in the first place.
Interesting comment….addition or multiplication error, oh well, but nothing about the taxpayers being denied access to the national checkbook. It seems a bit off since those same taxpayers and their descendants will be paying for all this.
“It seems a bit off since those same taxpayers and their descendants will be paying for all this.”
Are you suggesting the federal government do nothing and let the economy burn to ashes?
I could be wrong but I believe Mr. Weldon is commenting on the fact that We the People are getting a pathetically small piece of this bail-out, yet we’re the ones on the hook for it. The nation’s executives and millionaires thank you for your generous donation.
I think you’re right (correct, that is), dienne. The point is that (forget the math) the $1,200 check is a crumb being thrown to keep the riff-raff satisfied as the ‘owners’ suck even more from them after making poor decisions. The new corona virus is just a pebble the hit a pane of glass (an economy) already stressed to the point of shattering once again. And, it’s an excuse to sweep under the rug the shift of wealth to the very few at the top that has been happening for the past three or four decades.
We know that big business is getting a big chunk of this bill and that Trump has claimed he can exercise oversight…. see the “case” he makes here:
https://www.govexec.com/oversight/2020/03/trump-objects-pandemic-spending-oversight-congress-and-igs-still-have-authority/164219/
Like a telescope pointed at the Heavens exercises ” oversight” of what goes on down on earth.
Where have all the trillion$ gone
Long time pa$$ing
Where have all the trillion$ gone
Long time ago
Where have all the trillion$ gone
Gone to Wall Street every one
When will we ever learn?
When will we ever learn?
Excellent!
Correct me if I am wrong but the 20% represented by the alleged $1,200 one time check is not the only part of the $2 trillion bailout targeting the working class. There was also an increased amount of unemployment for the first four months.
“Expanded unemployment insurance
“Lawmakers agreed to a significant expansion of unemployment benefits that would expand unemployment insurance by 13 weeks and include a four-month enhancement of benefits — an additional $600 per week – on top of what state unemployment programs pay.
“In total, unemployed workers are eligible to receive up to 39 weeks of unemployment benefits.
“The program was expanded to include freelancers, furloughed employees and gig workers, such as Uber drivers.
“The massive boost in unemployment insurance is expected to cost $250 billion.”
https://abcnews.go.com/Politics/trillion-stimulus-package/story?id=69791823
Here’s how a ‘market guy’ looks at the $2t:
https://wolfstreet.com/2020/04/09/qe-4-cut-in-half-this-week-but-still-1-8-tn-helicopter-money-for-wall-street-and-wealthy-in-4-weeks-of-federal-reserve-balance-sheet-money-printing-and-bailouts/
He calls it ‘helicopter money’ bailing out the already wealthy. When will we ever see ‘trickle up’ economics?
History shows us when we will see “trickle” up economics, except it won’t be a trickle. It will be a river of blood when the working class can’t stand it anymore and rises up and starts a Civil War. There will be little warning when the fire is lit. Something small will happen to someone and that small thing will be caused by someone like Trumpty Dumpty. That will be the match that set off the bomb.
Sadly, I share that feeling, Lloyd.
If we had anything approaching a ‘democratic republic’, we wouldn’t need that ‘river of blood’. Despite what I was taught, and believed for many years, the days of the democratic republic appear to be over. We let them slip away when a small shift might have made a difference. Now, the ‘river of blood’ seems the only option for preventing a new Dark Age.
Back in the day (as you know), people living in the Athenian democracy became so complacent that they found sitting in the Forum an unbearable task. Toward the end, officials had to go out with ropes and herd people into doing their civic duty. Thus, democracy proved untenable and the age of tyrants ensued.
Choosing trusted representatives, people who have a special passion for the common good, is the latest model. But we are too lazy to hold these ‘representatives’ accountable to the people. And, at this point, how can we? The people have lost their power because it’s easier to sit at home and watch TV (eat the soma) than it is to engage in community governance (meeting and talking to people, reaching common agreement by both educating and being educated).
Creating a larger community takes work, cogent analysis and the tolerance to accept that someone else might have a better idea. Lacking any one of these qualities makes one unfit for public service. Yet, identity politics leads us to elect people who lack all three qualities. No wonder we no longer have a chance at ‘trickle up’.
I just found an interesting interactive map of the world. Move the cursor around and discover voter turnout in each country.
https://www.idea.int/data-tools/question-view/521
Before praising countries with very high voter turnouts, I suggest ignoring the 22 countries (next link) where voting is mandatory and only compare democracies where voting is voluntary like Canada.
https://www.pbs.org/newshour/politics/22-countries-voting-mandatory
Voting is mandatory in Australia, so we can’t compare the US to that country.
And voting is mandatory in Mexico but still only 63 percent vote.
Perhaps we have more in common with ants and lemmings than we think!
For sure, some humans are, and because there are so many of these human lemmings, they drag a lot of us that are independent, critical thinkers and problem-solvers down with them into the grave. A zombie mob that has been hypnotized by a false profit is very powerful even when they are like lemmings.
Lloyd – thank you for this – that was part of my point as well…the money for the $2 trillion was NOT only for the checks going to families…As for the bail out of businesses such as cruise lines and airlines – yes, I do see that as somewhat problematic, This is unprecedented in the way that so many aspects were impacted. I will concur that the bailout of 2009 of the housing industry and the banks stemmed from shady deals. And yes more oversight is needed. But let’s not kid ourselves that this money is only a small amount for the direct checks.
I think the focus on the bailout should have mostly ignored big corporations and focused on the largest segment of the population and that is the consumers.
With a bit of critical thinking and problem solving, for instance, the restaurant industry could have been helped and possibly saved by sending SNAP debit cards to unemployed workers that specifically could only be used to order take out from restaurants and a separate SNAP card for buying groceries from food markets.
Small businesses should have been in second place and the Democrats wanted to do that by sending them money to keep paying their COVID-19 caused unemployed workers.
A freeze on mortgages and rents for unemployed workers would have also helped — with of course some sort of safety feature for the banks and landlords so they don’t need up losing from frozen mortgage and rent payments.
But with the GOP majority in the Senate that was not going to happen. A compromise had to be made to get Corporate loving Moscow Mitch and his corrupt cronies to sign on board.
Now, Trump has made his play by firing the IG that would have been responsible to keep the bailout honest with more Trump threats that he is going to fire the other people that Congress put in charge of keeping the bailout as honest as possible.
I think Wolfstreet (market blog) understands the nefarious ways of ‘finance’ better than most of us (see link below).
This ‘money’ comes in various forms, but what is ‘money’? It’s supposed to represent goods or services, but if goods and services are actually being cut, what does that mean about the value of the money? AND, it hasn’t all been injected in the form of dollar bills. AND most of it’s being injected at the very top (banks, Wall Street, etc.) and will only ‘trickle down’ (maybe).
But we may get a pittance ($1,200) in order to keep most of us pacified. ‘Too Big to Fail’ wins again, at our expense.
https://wolfstreet.com/2020/04/09/qe-4-cut-in-half-this-week-but-still-1-8-tn-helicopter-money-for-wall-street-and-wealthy-in-4-weeks-of-federal-reserve-balance-sheet-money-printing-and-bailouts/