Comment by thwayunion | Hacker News Reader

Comment by thwayunion | Hacker News Reader

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> How far do you think those things went?

Not everyone lives on the coasts and makes SWE money.

Those stimulus checks ALONE were a TON of money for most people. For the average American just the checks were an entire extra month of net income (avg household = $71K and has two earners). Over 24 months it's $75 of additional spending per consumer per month, which when I was making $30K would have doubled my disposable income per month. Double spending. For two years.

AND stimulus checks weren't even half the of the amount that went out. AND the other half was even more disproportionately allocated to marginal consumers.

Enhanced UI, in particular, played a huge role. Combine that with stimulus checks and a lot of under the table untaxed work (done under the table to keep EUI eligibility), and people were doubling or tripling their net income for a year or more. The general asset bubble and explosion of retail investing didn't help.

It all adds up to a shitload of money in many parts of the country.

I know a good number of people in rural WV who are still living off of savings accrued during 52 or so weeks from 2021 to 2022. I'm willing to bet a much much larger number of people spent the last 2 years returning to the labor force but spending beyond their going-forward means.

> Those stimulus checks ALONE were a TON of money for most people

I don't understand how you think it's reasonable to compare "a ton", as a large amount of weight, to checks that did not cover a month of living expenses.

PPP loans were a nontrivial amount for businesses.

> a lot of under the table untaxed work (done under the table to keep EUI eligibility), and people were doubling or tripling their net income for a year or more

Which could be done before and after. Suggesting that no new conditions somehow tripled income makes no sense.

> I know a good number of people in rural WV who are still living off of savings accrued during 52 or so weeks from 2021 to 2022.

Probably not.

> I don't understand how you think it's reasonable to compare "a ton", as a large amount of weight, to checks that did not cover a month of living expenses.

Literally impossible.

US median individual income is $44,000, net $30K, monthly net $2.8K; stimulus checks were $3.2K. For the Average American, your assertion is mathematically impossible, which means that for a third of America your claim is outrageous.

If you're making $30K/yr, and depending on how you define "living expenses" vs "other expenses", the stimulus checks covered several months of living expenses. (eg: I now consider a car loan a "living expense" but when I made $30K the paid-off beater car was definitely a luxury expense and there were months when I left it parked and relied on a bad bus system because I couldn't afford the registration fees or an oil change.)

> PPP loans were a nontrivial amount for businesses.

Agreed. Nothing about Stimulus and EUI should detract from the massive handout that was PPP. Particularly because Stimulus and EUI at least went to people who weren't already doing very well.

> Which could be done before and after. Suggesting that no new conditions somehow tripled income makes no sense.

No. This totally misunderstands a few really important changes.

1. UI is hard to get, TEMPORARY, and not a lot of money. The additional $ and time from EUI changes the calculus pretty substantially.

2. lots of people already lost their job; picking up under-the-table work when you're already unemployed is different from making the choice to leave a job for UI and under-the-table work.

3. there was a definite social contagion effect.

4. huge parts of the economy shut down but a lot of that economic activity didn't stop. The government shutdowns created a huge black market for entertainment-related services.

>> I know a good number of people in rural WV who are still living off of savings accrued during 52 or so weeks from 2021 to 2022.

> Probably not.

EUI + continuing to work + some gambling wins = you can double your income for a year.

If you own a home and a car in good condition in rural WV, you can keep living expenses below $10K. So if you were making $50K and double that for a year, you're in a place where you can take a year or three off. Or blow a shitload of cash on Amazon or whatever.

> Those stimulus checks ALONE were a TON of money for most people

Or $0 if you're a SWE living on the coasts.

I realize we make a lot, but we pay a lot in taxes. Just send the $3,000 check to millionaires and don't worry about it. I'm getting frustrated with the government telling me I'm rich while I can't afford an upper middle class home.

> Or $0 if you're a SWE living on the coasts... I'm getting frustrated with the government telling me I'm rich while I can't afford an <strike>upper middle class</strike> home.

I hear ya, brother :)

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