Quote:
Originally Posted by Peter_Spaeth
Again I am no socialist, but handing massive sums of money out to the wealthy and encouraging them to spend it on luxury goods doesn't seem like the most efficient way for a government to stimulate the economy in a way that benefits the people who are most in need. Small businesses teetering on the brink, trying to keep their people working, a different matter. Anyhow Ryan, shame on you for not taking the money, you didn't do your part.
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My clear recollection from when I was working on my MBA was an economics professor saying just this. If you want to use government spending to stimulate an economy, you create more velocity of money by giving it to those most likely to spend it: the working and middle classes. The renters and not the rentiers, if you will.
EDIT: To be clear, the PPP program did work towards this end by helping businesses maintain payroll. But, anytime you filter money through intermediaries, there is going to be shrinkage and opportunities for fraud.