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Saturday, February 20, 2021

Paying for Biden's $1.9 Trillion Relief Package

Big money, big risks, and big debt! ....but.....doing nothing is also a risk. We are not competing well as a nation and while we can see our target of where we need to go it is hard to gain the support to get everyone rowing in that direction. I don't think people are debating coordinates to our destination in so much as they are debating how to get there.

1. Relief Plan: Get over immediate hump.

2. Recover Plan: Move economy to recovery.

There is a discussion on how to pay for it that includes taxes, borrowing, and printing money. Each one has their own risks. The pots in which the package pulls from is important. The recover seems to be centered around the Digital Economy, Infrastructure and Green Economy. Those are all great ideas (If we can make them work). 

This is where I think law makers can be helpful. Let us consider the utility and reach of this money to maximize its outcomes. Money isn't lost unless its not returned in terms of tax dollars and improved economic health of the nation (I'm not considering the social side of this). Thus, we have to find as many net positives for the money as possible (Money/value is returned X times beyond what is spent...which then services debt and feeds future initiatives making the economy sustainable and continuously advancing). The risk of this money is that it is ineffective, spent inappropriately, earmarked for special interest, etc... etc... etc... In other words its wasted leaving the tax payer holding the bag! Looking at the money to ensure it has maximum utility is helpful and that requires people finding more for opportunities to further its utility (I'm looking at this from a theory standpoint). 

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