This from Brian Sullivan on CNBC. Very eye opening.
New study from the Journal of Economic Perspectives, and summed up by the St. Louis Federal Reserve in a blog post, shows how much waste may have come from the 2020 Paycheck Protection Program (PPP).
The program 'loaned' out $793 billion. Of which $714 billion - or about 90% - has been forgiven (so goes to national debt, aka taxpayers)
In their study, the St. Louis Fed authors admitted the program was "timely" and may have saved 3 million jobs. But they also found that:
* 90% of the nearly $800 billion in 'loans' has been forgiven (never will be paid back)
* Only 25% of the money actually went to workers whose jobs were saved
* Of jobs "saved" they cost an average of $169k-$258k, vs. average small biz income of $58k
* 72% of the $$ went to top 20% of income earners
* "Highly regressive"
* Most went to the business owners, banks, suppliers, etc.
* PPP money was mostly non-taxable income
* Some PPP money had negative tax rate due to business expenses
The government's own data shows that of the industries that took the most money in "loans" - many were those that actually ended up BOOMING during the pandemic, such as car dealers, real estate and fast food owners. Hopefully most of that money has been paid back, given many did so well.
When reflecting on TARP of 2008, the entire bailout was $700 billion. Government made a lot of errors in the last 2 years. It should scare everyone these same folks are in charge of the world’s energy policy.
That last sentence is of neutron star-like density....
Updating Senator Everett Dirksen's comment on governmental profligacy, "A few hundred billion here, a few hundred billion there...sooner or later you're talking real money!"