Big sums of one-off money are a great spectacle, but they have negative short-term impacts (likely to cause another spike to inflation) and negligible long-term benefits as once the funds are spent it’s just a return to the status-quo.
A more aggressive tax-cut for the lowest band, as well as a boost to services offered to those same people (rent assistance, dietary stipends to promote healthier foods etc.) funded by the top-end of town are the best long-term solution- but they don’t cause anywhere near the same level of media ‘splash’ as a “free” $1K would.
What you call ‘market distortions’ are at times the only other means of getting additional money into the hands of low income earners.
If someone’s already paying $0 in income tax, either because they are on disability payments, a student, or caring after a loved one - then providing them with supplemental rental and nutritional payments are sometimes the only thing standing between them becoming unhoused and going hungry.
Big sums of one-off money are a great spectacle, but they have negative short-term impacts (likely to cause another spike to inflation) and negligible long-term benefits as once the funds are spent it’s just a return to the status-quo.
A more aggressive tax-cut for the lowest band, as well as a boost to services offered to those same people (rent assistance, dietary stipends to promote healthier foods etc.) funded by the top-end of town are the best long-term solution- but they don’t cause anywhere near the same level of media ‘splash’ as a “free” $1K would.
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What you call ‘market distortions’ are at times the only other means of getting additional money into the hands of low income earners.
If someone’s already paying $0 in income tax, either because they are on disability payments, a student, or caring after a loved one - then providing them with supplemental rental and nutritional payments are sometimes the only thing standing between them becoming unhoused and going hungry.
Removed by mod