January 2021

The reality of the true cost of stimulous money on job creation and going after the Wall Street bonuses.

There is one thing that is never mentioned relative to the costs of stimulus package jobs that are created. If one job is saved by the money on a salary of $25,000 then for the $25,000 that the government contributes you have to deduct the amount that comes back to the government (federal and local) in direct and indirect taxation through the person having that money. Perhaps in the region of $10,000 and if the government would be paying unemployment and other benefits to that person, say $8,000 per annum then in reality the cost difference to the government as a whole would be only $7,000 and it is still helping expand the economy. Obviously these are rough estimates as if the wages were higher the amount received in taxation would be greater.

Of course much of the stimulus money goes beyond wages but that still goes into the economy. It is obviously important to see it is spent well but there is a big political spin smokescreen coming out of the Republicans at the moment (I am not a democrat btw). And they are also attacking going after the bonus money for Wall Street, most of which is created exactly because the government used your money to fix their screw ups. Don’t you deserve that back? The French people have already made a profit from their banks bail outs because their government fears the people (not the other way around) and looks after their interests better.

Obama is totally right to impose penalties on these bonuses. I’m not entirely ignorant to the workings of Wall Street. At 18 I was the youngest qualified stock broker in the UK and a trader on the world stock markets. These folks are not worth these bonuses at the best of times and make their fortunes ultimately on the back of the work of true entrepreneurs and hard working people. By not going after them to claw back their bonuses, the perpetrators of the collapse that has ruined lots of innocent people will be rewarded very well with your dollars.

Their bonuses are calculated on short term increases. because of the market collapse there was so much more room upward for them to make this money, so they are now profiting because of their failures. If you’re not backing the president clawing back the money then you have no right to ever complain about the government frivolously spending your money ever again. And why get so upset about money helping create jobs in the US when the same people complaining rarely complain about the privatization of the military where a few individuals with a few companies are making a fortune out of your dollars.

22 comments to The reality of the true cost of stimulous money on job creation and going after the Wall Street bonuses.

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