Stimulus Aid Package

The President is concerned about the economy, as well he should be. Our Governor is concerned about the disease spreading across our state and nation, as well he should be. We are in the midst of a global emergency, both medically and economically. The data for almost anywhere but China show that the pandemic has yet to level out. The rate of new cases continues to rise. Hundreds of patients are dying each day in Italy, Spain, Germany and across Europe. I agree with the scientists when they warn about the potential impact on the homeless. I agree with the dire predictions of the virus getting a foothold in India. The sickness is real, and we must do all we can to slow the spread, but we must also look to the future. We can’t wait until the pandemic is over to deal with the economic consequences.

The two trillion dollar aid package highlights some sectors of the economy that will be hit the hardest. The airlines and a few other corporations will get a huge influx of cash. Aid for lower income Americans will include food assistance, child care, and extension of unemployment benefits. A significant amount will go to the states in the form of disaster relief. Small businesses, such as shops and restaurants, will receive loans or grants to cover four to eight weeks of payroll. It is a massive package, but some parts of the economy will be left to fend for themselves.

Small business owners who provide professional services will be stressed to the limit. Engineers, technical consultants, and financial advisers generally exceed the maximum income for government assistance. The self employed are ignored. There are thousands of skilled craftsmen who are paid by the job. They are frequently independent contractors who are not part of a parent company. I have a friend in the entertainment industry who follows the fair circuit around the country. He has been out of work since the first coronavirus case was reported in Seattle. The aid bill will give him scant relief.

The aid package generally overlooks economic infrastructure. Our economy depends on a complex logistical chain. When one link in the chain is broken, the whole system breaks down. In normal times, supply and demand finds new links to restore continuity, but these are not normal times. Consider food distribution. Our system to move food from its source to our grocery stores is already feeling the impact. Distribution to regional warehouses is an intricate system in itself. Consumer panic and stay-at-home orders have upset that system. Warehouses are beginning to empty. The trucks that deliver to local market are running late and partially empty. We are already experiencing shortages on store shelves, and it is caused by more than hoarding toilet paper. The entire system is under attack and will take time to rebuild once the panic subsides. If our government wants to do something to help the economy without raising the debt, they can get the FAA to quit punishing Boeing so they can deliver the 737s setting on the ramp in Moses Lake and get their workforce back on the job. Or, they could protect our domestic oil producers with a tariff on Saudi imports. Regionalism by the Saudis or anyone else cannot be rewarded during this pandemic.

Our Governor has extended the lock down another full month; by that time, the state budget will be far into the red. Our state now has fifty people out of work for every confirmed case of the virus, and the number unemployed is growing faster than COVID 19 patients. The federal relief package includes $1,200 for each citizen with no strings attached. A month from now, that money will be long gone, and the growing number of unemployed will still be unable to make house payments or buy groceries.

This is not the time for another partisan investigation. It’s time to quit paying politics and stop throwing rocks at the President. We have some very smart people in this country. It’s time to encourage good ideas that will not hurt our long term chances of economic survival.

Frank Watson is a retired Air Force Colonel and long-time resident of Eastern Washington. He has been a free-lance columnist for over 20 years.