If you willingly chose to quit your paying job, spent all of your savings, then demanded that someone else foot the bill for your lifestyle… that wouldn’t make sense. Well, not to most people.
But it sure seems like some states in the U.S. are doing that, by utilizing a form of “handout economics” after voluntarily choosing to shut down businesses in response to COVID-19.
One example would be Washington state, where Governor Jay Inslee has kept the state under various levels of “lockdown” since February 29. “Non-essential” business closures or restrictions resulted in record unemployment as high as 15.1% back in May.
Leaving alleged Nigerian unemployment scams aside, Inslee has since demanded that Congress send even more money his way. Quite strange, considering his decisions created Washington’s worker and tax revenue shortfalls.
In California, Governor Gavin Newsom also requested to dip his hands into the federal government’s coffers. This request came to account for the bloated state budget and skyrocketing debt caused in part by his decision to lock down the Golden State.
But to look at what seems to be a more interesting example, we head to San Francisco…
More “Mad Money Printing” and the Fed’s Problem
Around December 7, San Francisco Mayor London Breed issued yet another immiserating lockdown for the “Golden City.” She even admitted to the impacts on Twitter:
Small businesses are closing at alarming rates. People are behind on rent. This isn’t sustainable.
Local budgets have been crushed by this pandemic and we’re facing devastating decisions over the coming months around jobs and services.
As Mayor Breed should have expected, if she made the decision to shut down small businesses, they would eventually close. The people that worked there would become unemployed, and eventually get behind on their rent or mortgage payments. Without the added tax revenue stream, local budgets would get “crushed.”
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