I just got in an online argument with a group of people over this proposal:
There are about 40 million people in the workforce who are susceptible to COVID 19 by either being over 50 years old or having a preexisting medical condition. We should give each of them 1 million dollars to retire, subject to the following restrictions:
1 They can no longer work.
2 They must buy an American car
3 They must buy a house cash or pay the mortgage off for whatever house they already own.
This would fix everything by allowing people to return to work and simultaneously fix the labor force by eliminating debt and unemployment.
My reply was that this was stupid, and anyone who endorsed it obviously didn’t understand basic mathematics or economics. First, it would cost 40 TRILLION dollars to pay those 40 million people a million each. Second, there are only 15 trillion dollars in existence, so this payment would be more money than actually exists.
I was laughed at and called ridiculous. The people who called me ridiculous fell into two camps:
1 Paying 40 million people a million dollars each would only cost 40 billion dollars, less than the cost of an aircraft carrier.
2 There is no limit to the number of dollars that exist. You just add it to bank accounts on the computer, it isn’t like they actually have to PRINT the money in today’s day and age.
Sigh. I left the discussion. I just don’t have time to explain the ways that they are wrong.