“Tragic Effects” of Covid

Fed Chairman Powell spoke at the National Association of Business Economics on Tuesday with a very dire message that a resurgence of Covid could have "tragic effects" on the health of Americans and the economy. He also strongly recommended that people wear facemasks and practice social distancing. Chairman Powell also urged Congress to pass additional legislation that would support economic growth. He believes our fiscal policy needs to err on the side of going too big, rather than too small.

Personally, I am not so sure of this as our deficit and debt is growing faster than the wildfires in California. And all this debt long-term has to be repaid and will slow economic growth to a crawl of 1% or less a year in the near future as the debt crowds out productive uses of money and this will destroy the middle class. But, we do need to get money to small businesses much more effectively.