Former Treasury Secretary Steve Mnuchin Discusses $1.9 Million Relief Package

Former Treasury Secretary Steve Mnuchin believes that further stages stimulus would be helpful. He states, "traditional economic models don't really work here". He would like to see a 5th or 6th bill get passed. Inflation could be a risk as the market becomes more flooded with govt. money but that inflation should be managed and stabilized. There should be some concern over the debt. However, he believes stimulus can be helpful for getting the economy back on track.

I think in this case he is right in terms of the economic principles are different then they were in the past. The fundamental nature of how we interact and share things has changed. The Digital GDP and Information Age are challenging a number of the old assumptions. New economic phenomenon will push our older economic models to better incorporate a digital e-commerce world.

I'm not opposed to spending money but I think that we should think mid to long term and how it will create a "net positive". Net positive means that we invest in things that can generate more value than their initial investments more business, stronger infrastructure, technological advancement, start-up businesses, worker skills, etc.... 

While the money helps today it also carries with it the potential to create a lot more value down the road. Its not just money to create liquidity alone! As a general government strategy, maximum utility of money makes sense (Read Utility Theory Here). It is possible to research and understand how money impacts outcomes in multiple venues.

While government's are generally not businesses they do need to improve their resource base so they can generate more revenue that leads to more government resources in the future (For example, when given a choice....invest for returns in things like perhaps digital infrastructure, worker skills, Great Lakes ports, online education, research, etc...).

As a nation creates more net positives they also develop economic sustainability where government expenditures increase the tax base through more economic activity that also improves the quality of life for Americans (jobs, opportunities, education, lifestyle, etc..).

Sorry...jumping off of the soap box. 😬