Fed President Says We Need More Stimulus For Economic Recovery
The president of the Dallas Federal Reserve, R. Kaplan, recently did a CNBC interview and he discussed the need for more stimulus to help boost the economy.
“It’s critical we have money to do vaccinations and testing. It’s critical that people who are out of work have continued relief beyond March,..." - he said during the interview.
From helping with the vaccination rolling out to those who want it, along with giving schools needed funds to reopen etc, there are a variety of issues that need attention as far as funding goes.
“It’s critical we have enough money to reopen schools, and one of the big issues in this pandemic is women with children have disproportionately left the workforce. So getting schools reopened in person, having money for that and money for child care is going to critical to getting that group back into the workforce. We need it if we’re going to grow faster.” - says Kaplan
As for when they should stop with the stimulus he says that is a discussion to have at a later time and that right now they should "be aggressive" with their actions.
Trillions of dollars in debt and counting... There is growing concern when it comes to paying those bills, wondering when that might be, and it isn't going to be an appealing sight if the problem is ignored for years to come. The action to get aggressive with that much stimulus spending is going to be a move that comes at the cost of future generations.
With the debt growing to new highs this also makes the country less capable of handling a future crisis, doing the same would only make the problem worse for example.
Building Debt Long Before COVID-19 Of course, COVID-19 isn't to blame for the many trillions that the U.S. has accumulated over the years in debt. Today the debt is more than $27 trillion and expected to reach more than $70 trillion by 2028. Although COVID-19 sure has accelerated the problem. Eventually the bills will need to be paid, we'll see that either through higher inflation or taxes or perhaps a combination, it cannot go on forever without a cost.