When I was very young, a boy named Ronnie lived next door. And, if the truth is told, Ronnie was a very spoiled young man. Whenever a tumble or scrape would happen, his mother would run out of the house, candy in hand, and soothe any hurt.
Although this strategy worked well, Ronnie would instantly benefit from the sugar-high. Nonetheless, he would still have that bruise or wound.
Unfortunately, Sugar-Highs does not cure all.
Yesterday, President Trump signed into law the latest Appropriations Bill. And although Congress is still working out just how much of a Sugar-High this legislation will work out to be.
Will it be a $600 dollar check for every taxpayer, or a $2000 check?
The point is that this “Stimulus” in fact does not cure our economic wounds.
The fact remains that on Thursday another 3/4er's million workers will likely apply for unemployment insurance, as they will have joined the 20 plus million who have lost their jobs.
Small businesses across the country will continue to shutter their shops, for the last time. And up to half of all independent restaurants across the nation, will serve their last meal.
You see while a temporary check, or even a trillion dollars in monetary infusion will help us for a little while. The truth is, that like Ronnie, that Sugar-High will wear off, and we will be stuck with our wounds.
And right now we have a group of Governors, who for some reason, continue to ignore this basic economic reality.
It's the usual suspects, the names you know well, Newsome in California, Cuomo in New York, Whitmer in Michigan, Wolfe in Pennsylvania, who continue to shut down their state's economy.
And unless and until those states come back online economically, we cannot expect that this country will achieve a sustainable financial future.
Before all this began, this was a 21 trillion dollar economy. Today, our economy is less than 19 trillion dollars, as measured by the annual Gross Domestic Product. The only true measure of the nation's production of goods and services.
The sad reality is that we will see our economy, continuing to decline each and every day, that those Governors keep their state's businesses locked shut.
So while many on Wall Street were quick to celebrate this latest stimulus package, Goldman Sachs for instance just raised their Q1 estimates for stocks, remember this is not a cure.
It is only a placebo, designed to make us feel better, and indeed help us through this winter.
But our real future lies in our ability to earn our own way. To make a living.
Only then will this economy once again become self-sustaining.