I wrote Capitalism at Work last month. Then COVID-19 arrived. President Trump followed up with a two-trillion dollar package to help those in need. Even though this is not capitalism per se, I think we can all agree that these are extenuating circumstances. Americans need help during this difficult time to overcome the effect of the Coronavirus.

 

Quantitative Easing: Good or Bad?

There have been previous Quantitative Easing (QE) efforts – and dare I say it, schemes that — were meant to help our nation’s economy. But in many cases, far too much corruption of monies went to bolster the economy and not directly to the people.

Sure, these QE efforts had a good short-term impact on the economy. But the impact never lasted long. Over the years, one QE effort led to another … and then another. The economy never became stable; only the printing of money grew and grew, and so did our nation’s debt. Over time, the six largest banks ended up with a whopping $10 trillion in assets, yet Americas debt went soaring to 22 trillion. (Google – Quantitative Easing Explained – The Balance)

President Trump, on the other hand, is using QE to help the American people. It’s putting money directly in the hands of Americans who need it. That’s in direct contrast to Nancy Pelosi, who added in some of her own items not even related to the Coronavirus. (The Mega-Bailout Leaves 4 Mega-Questions – POLITICO) (Have We Learned Nothing? – POLITICO) The important concept here is that our President is prioritizing money to help the American people.

 

Does Quantitative Easing Mesh With Capitalism?

Capitalism itself overcomes nearly all obstacles and outsider influences. But this once-in-a-lifetime plague may be the exception. In this case, the President did what was needed to help the American people.

Once this virus is over, and America is growing again, it will be up to the American people to take better care of themselves. Not just for their health, but their own financial well-being. All Americans need to look to bettering themselves by putting money aside and lowering their own debt. Many Americans live from paycheck to paycheck. And as our President gets back to work increasing people’s incomes and lowering their taxes we can all work towards long-term economic prosperity.

I still believe Capitalism is far greater than any other form of government among the nations of the world. It will prevail.