ATLANTA, GA, May 23, 2020 — Allen Buckley, a fiscal conservative independent candidate in the special election race for the U.S. Senate seat currently held by Kelly Loeffler, says the “wait-and-see” approach makes more sense than Jerome Powell’s add much federal debt now approach, in dealing with the economic downturn related to the coronavirus.
Federal debt is now approximately $25 trillion. By year-end, it will likely exceed $27 trillion, as roughly $4.5 trillion will be borrowed in 2020 and federal revenue for 2020 will be well below $3 trillion. Annual federal revenue has never exceeded $3.5 trillion. The Congressional Budget Office (CBO) recently reported that the public debt-to-equity ratio is expected to hit 101 percent by the end of 2020, and 108 percent by the end of 2021.
It was recently reported in The Wall Street Journal that a Fed statistic shows 39 percent of people making less than $40,000 per year have lost their jobs. However, under the unemployment provisions of the CARES Act, the vast majority of those people should receive more in unemployment compensation than they received as pay while working.
Buckley said: “Things passed already include ordinary unemployment benefits plus $600 per week, including for self-employed persons previously ineligible, 8 weeks of payroll, rent, utilities and mortgage interest for businesses with 500 or less employees, rent relief for many renters, mortgage payments deferral for up to a year, 6-months coverage of SBA loans payments, stimulus checks of $1,200 apiece for most adults (with $500 more for each child under 17) and loans to larger businesses. Small business can also receive a $10,000 EIDL grant. Much of this money has not yet reached the people and businesses. The Payroll Protection Program (PPP) money will largely run through sometime in June. The unemployment benefits came late for most, meaning there was a lot of pain at first. But, once made, payments in arrears are included, and the payments will run through at least July 31st. Regarding the 39 percent of the people who are unemployed and make less than $40,000 per year, most are making more than they made while working (and thus will have little incentive to return to work as businesses now begin re-opening). Professional firms, including affluent law firms and doctors’ practices, lawfully took advantage of the PPP. For those staying home from work because schools have closed or because they need to care for self or another, paid leave exist. Obviously, there is a lot of wasteful overlap. Rather than adding a couple trillion more to the national debt, let’s fix the legislation that has been passed. Nothing is cast in stone.”
Mr. Buckley’s “Save Tomorrow” campaign is about living for today and tomorrow, instead of living for today to the detriment of tomorrow. The focus is on doing things to make tomorrow as good as or even better than today, by acting now to address the nation’s financial challenges and confronting global warming in a practical way.
Mr. Buckley is an attorney/CPA. He can be reached for comment at (404) 610-1936. Mr. Buckley’s campaign website is www.buckleyforsenate.org.