By Tyler Durden | 19 May 2020
ZERO HEDGE — One of the great tragedies in America today is that of the CARES Act, which included a $1,200 stimulus check and an additional $600 weekly payment for the unemployed, has given millions of Americans their first real taste of socialism, that is the sweet taste of the forbidden fruit of free of money.
The Trump administration has unleashed helicopter money directed at households that will have severe consequences. Not too long ago, we noted how government intervention, cushioning households from an economic depression, will prolong the recovery in the labor market as people get paid more to sit at home than work and be productive in society:
“So don’t expect the unemployment rate to bounce back very much once this pandemic begins to subside. Congress has decided to make it very financially rewarding not to work, and millions upon millions of Americans are going to be more than happy to take advantage of that opportunity for as long as it lasts.”
As Arizona’s economy reopens, one restaurant owner has blamed the CARES Act for labor shortages, even though she says the national unemployment rate is very high. […]