Cake
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    • Just as we've seen in previous recessions, folks tend to hunker down, the savings rate skyrockets and discretionary spending plummets. People are unwilling to spend when they don't know what's around the corner.

      While Mark Cuban's idea of use-it-or-lose-it stimulus checks have a lot of merit, my fear is people would simply spend the stimulus checks as a replacement for essential expenses they
      would buy anyway, such as food, rent and mortgage payments, leaving their savings untouched and banking their paychecks if they were still on payroll.  I.e., net spending would not increase beyond what it would have been.

      I'm kind of with Bill Gates on this.  People won't resume discretionary spending
      until they feel their financial reserves have been replenished.

      I've long been a fan of a federally supported, modern day version of the Civilian Conservation Corps (CCC), the successful public works jobs program of the Great Depression years. 
      I have friends with grandparents who participated in the CCC and found it a lifesaver, in one case re-enlisting for a second 2-year stint.

      In my view, a modern CCC-like program could be operated continuously and dialed up quickly in a crisis like COVID-19.  During normal operation, it could provide public service jobs for those in desperate economic need and those transitioning out of drug rehabilitation programs or even prison who could benefit from a structured work environment.

    • I wonder to what extent the $1,000 spend every two weeks could end up going towards deferred essentials.

      For example, your washer and dryer are barely still working but a replacement costs $1,500 and you only have $600.

      Or, you don’t need to buy a new car for at least six months, but the $1,000 “use it or lose it” cash accelerates your purchase to now.