Government to the Rescue?

Reminders of WII and FDR abound these days. The clarion call is for the Government to step in and save the day. Many are saying trillions of dollars must be thrust into the hands of those whose income has been shut off through no fault of their own. At the risk of being called heartless, let me offer another path.

While it is true that employees are not receiving income, it is also true that their businesses are not making any money either. That means businesses with credit/loans they may have outstanding will require using savings or go unpaid. Freddie Mac and Fannie Mae have eschewed foreclosures and many states have passed temporary stoppage of evictions. With some tweaking, keeping people in their residences should not be an issue. As for the other necessities, food and medicine, grocery stores and pharmacies could accept markers from those without credit cards. It harkens back to another time of crisis that we somehow survived. These markers can be cleared once the workers are back to work and making money again. Credit card companies and banks can suspend credit card minimum payments for a time until the coast is cleared.

Most states have shut down commerce except for pharmacies and groceries. With limited need for cash beyond food, medicine and housing, the critical need for indiscriminately putting trillions into the hands of yet to be determined persons, seems like overkill.  The stock market crash of 1929, had it been left alone, would have seen it rebound much quicker shortening the depression that resulted. Indeed, the FDR programs put in place last century have proven to be albatrosses around our necks. TARP was a bust that only delayed recovery.  History tells us that government efforts to “correct” things foment other problems.

Letting markets work can be frustrating and does result in some inequities but far less than those caused by the intervention of the government. I for one believe we need to take a chill pill. Dear elected officials, please stay out of it. Your pandering with printed paper will only do more harm.