The Fiscal Outlook: Biden and Stimulus Checks - Debunking Myths and Predictions

Recent discussions about another potential stimulus check have sparked debate and concern among taxpayers and policymakers alike. This article delves into the complexities of the topic, addressing common myths, the national debt burden, and the political and economic factors influencing future fiscal policies.

Understanding the National Debt and its Impact

The concept of the national debt is crucial to understanding the financial landscape in the United States. Since the administration of Joe Biden, alongside the "Obama/Biden Regimes," the national debt has surged. By the time of this writing, the total national debt stands at over 31 trillion dollars, a stark increase from prior administrations. If we distribute this debt among the current taxpayers, the individual burden can be staggering.

The financial strain is further exacerbated by the interest payments alone, which stand at around $2900 per taxpayer annually. As the debt accumulates, the purchasing power of the dollar diminishes, with a historical perspective showing that the dollar has lost significant value over the last few decades. For context, what could be exchanged for 1 oz. of silver in 1966 is now worth $31 in today's currency, and scrap silver is valued over $25/oz.

The Political Context of Stimulus Checks

Stimulus checks have been a recurring theme amidst the ongoing struggle to combat the economic fallout of the COVID-19 pandemic. The first round of stimulus checks was implemented under the Trump administration, contributing to the confusion about the counting of these payments. Given this history, it is unclear if a new round of checks would be labeled as a "fifth" check or continue the sequence from the previous administrations.

Another point of contention is whether current recipients, particularly the disabled, are truly benefitting from these payments. Critics argue that there should be income thresholds for stimulus checks, ensuring that the most affected individuals receive the support they need. For example, retired CEOs earning over 50k annually or disabled individuals with similar income levels may not require additional financial assistance.

The Real Issue: Who Needs the Support?

The need for stimulus checks often stems from the doubling or more of the cost of living, which primarily affects the lower middle class and the truly poverty-stricken. This demographic is the most vulnerable to inflationary pressures and should be prioritized for relief measures.

Despite the importance of supporting those in need, several factors suggest that another stimulus check in the near future may not be on the cards. With job recovery on the horizon and inflation beginning to rise, the economic climate is shifting towards a more balanced approach. While such relief measures would offer significant financial aid, the current economic trends indicate that a fresh round may be unlikely.

Homelessness and Taxpayer Inclusion

Another point of interest is the status of homeless individuals, who often fall through the cracks in the tax system. While the current system does not category homeless people as taxpayers, there have been discussions about providing financial relief to those who are struggling to pay for basic necessities like fuel. However, such proposals face opposition, with some on the right calling them socialist.

Conclusion

In summary, the debate over another stimulus check highlights the complex interplay of economics, politics, and social welfare. While undeniably necessary for some, the broader question revolves around the most effective and equitable ways to provide financial support during times of economic strain. As the Biden administration navigates these waters, the hope is that the focus remains on those most in need while addressing the broader economic challenges facing the nation.