We cannot open up the economies of the world until we control the pandemic.
We cannot adequately control the pandemic using past outmoded economic practices.
Cooperation among the nations is imperative for success. The United States of America is well suited to handle the pandemic with the correct leadership.
The global debt cannot be handled with traditional methods. Austerity programs are short-term "feel-good" fixes, harm people - and the economy - and cannot make a dent in the debt. Raising taxes hurts people and businesses and is not viable. The debt is just too large. We must understand the debt, America's and the world's.
"Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains." Steve Jobs
Each day – barring significant upheavals, natural catastrophes, pestilence, or war – the number of people on Earth grows slightly, and the natural resources are slightly depleted. Populations grow. Natural resources shrink. We use numbers as symbols to express these and as a means to understand reality and to monitor changes and exchanges. Each country has its own economy reflective of its peoples, its culture, its physical assets, and its relationship with other countries. Combined we have the world economy, hurting at the moment. Hurting because of the pandemic, but also because of the enormous global debt that has resulted from the lives of creative, destructive, and industrious humans blessed, but bridled by innovative financial instruments and methodologies. We must not only think about this, we must do something; or, indeed, we are a backward species.
The World Debt is accepted to be above 250 trillion dollars. And growing. U.S. debt is over 27 trillion dollars. But what does this mean?
To put it into perspective, let us consider a million, billion, and trillion:
A million seconds equals 11.5 days.
A billion seconds equals 32 years.
A trillion seconds equals 32,000 years, 31,688 years to be exact.
It is estimated that if things do not change the United States of America will only be able to pay the interest on its debt in 8 years. This is unacceptable and unsustainable. If the world's richest nation is in such dire financial straits, what of the rest of the world? Many other countries are in similar serious fiscal peril. No one is immune. All are affected.
This causes governments to hesitate spending when spending is absolutely imperative. The world is at war with the pandemic. To win, we must finance staying at home, businesses in hibernation, and governments at the national, state, and local levels. We must be free to have a paid full lock-down until the vaccines are ready
The U.S. continues to set new daily record highs of coronavirus cases. Countries grapple with the thoughts of lock-downs or partial lock-downs. But the specter of the debt disables everyone from taking the needed action.
A doctor on President-elect Joe Biden’s coronavirus task force floated the idea of shutting down businesses in a lockdown that could last four to six weeks to control the spread of the pandemic.
Dr. Michael Osterholm, who currently serves as director of the Center of Infectious Disease Research and Policy at the University of Minnesota, said:
“We could pay for a package right now to cover all of the lost wages for individual workers, for losses to small companies, to medium-sized companies or city, state, county governments. We could do all of that.”
Of course we can:
Fed Chairman Jerome Powell has said:
"As a central bank, we have the ability to create money digitally. And we do that by buying Treasury Bills or bonds for other government guaranteed securities. And that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks."
So, even though we can do it, we don’t. We squabble about $600 per week, Congress takes a break and lets the stimulus package expire, evictions loom, states and municipalities are contemplating layoffs in essential services. And, yet, many believe the whole thing is a hoax. It is no hoax. We have Americans dying every day, 7 days a week.
People are dying around the world.
We need a plan to fight the pandemic and we need to be free to fund such a plan fully.
We need a global plan. We need to reboot the world economy and fund a worldwide lock-down wherever needed.
Allow people to remain home and get paid until the pandemic is controlled.
Provide funds for businesses, large and small.
Provide financial assistance to every government, every state, every municipality, and every locality.
Fund all essential projects. FUND ALL ESSENTIAL PROJECTS.
Provide increased liquidity to every market.
Strengthen all countries.
Have credit available for massive building projects such as infrastructure.
Restore solvency to Social Security in the U.S.
Realign and eliminate student debt.
Assist depressed countries.
Put millions of people to work.
Fund research and development in renewable energy technologies.
Fund research and development in worldwide climate change.
Rebuild our cities.
Enable financial markets to fully function.
Strengthen the world and individual economies.
Allow us time to solve some of Earth's problems, first that of the pandemic.
Set up emergency provisions funds for subsequent problems.
End the curse of global debt on peoples and countries, giving people a fresh start, particularly useful after the pandemic.