WaPo's Rampell gets it wrong again, essentially.
Another response to Catherine Rampell's attacks on universal direct cash payments.
Please explain how it has become "clearer" who has suffered? Some 50%
of Americans have lost income, across all income levels but certainly
concentrated among the poor. But as these comments show, 2019 tax
returns will not reflect that. So yes, in general, it has become
clearer, but I disagree that there is a magic wand to decipher who is
deserving and who is not. But making it, say under 150K, like the last
round of checks, you only leave out about 10% of the population, so only
incur about 10% of the cost. Not only will people like me, in the top
10%, who have not lost income, use it to pay off debt for schooling,
invest in my retirement, give to charities, get work done that we have
been putting off, and etc. but I am totally fine with a small extra cost
to make sure that no children are left hungry b/c of a virus.
Agree, we need to tackle the problem of people who are under-banked. See Andrew Yang's proposal for NY as a start.
I
think your argument that some means tested programs are popular is a
fallacy. Welfare, however you term it, is not. Period. The specific
case does NOT translate to the general, ie fallacy of illicit
transference.
Since the racist attacks on "welfare queens" by
Reagan, public opinion has soured on the concept. Add in 50 years of
stagnant wages for most Americans, uneven growth, globalization, and you
get the kind of populist political backlash that gave us four years of
Trump criminality.
The problem is not with providing universal
benefits, that are hugely popular (see Bouie's article about how
important it was that Trump put his name on the first round of checks),
politically a winner, but on the tax side.
Going from a top
rate of 70% or more from 1946-1981, to 30-40 from 86 on has cost the
government millions and incentivized all the wrong kind of behaviors
from risky investments to massive executive salaries. Get that rate
back to 50%, then we can talk about who is deserving or not for relief.
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