U.S. Paycheck Protection Program - Why Did the Money Go?

[Axtremus]

Popular press article: https://qz.com/2114758/the-us-paycheck-protection-funds-went-mostly-to-the-richest-20-percent/

Federal Reserve’s paper: https://www.nber.org/papers/w29669
PDF: https://www.nber.org/system/files/working_papers/w29669/w29669.pdf

Short version:

• The 2020 program got a lot of money that went to those with higher income - mostly because of time pressure to deal with the suddenness of the pandemic and the country did not have the infrastructure to do better targeting at the time
• The 2021 program was better at targeting the money at those with lower income

[Copper]

Yes, they sent me a big pile of money

I don't know what I'll do with it, it is kind of a hassle to take care of all this extra money

I guess I can use some of it to light my expensive cigars

[Larry]

This is a perfect example of why government should be reduced in size and get it's nose out of things.

[Mik]

@axtremus said in U.S. Paycheck Protection Program - Why Did the Money Go?:

Popular press article: https://qz.com/2114758/the-us-paycheck-protection-funds-went-mostly-to-the-richest-20-percent/

Federal Reserve’s paper: https://www.nber.org/papers/w29669
PDF: https://www.nber.org/system/files/working_papers/w29669/w29669.pdf

Short version:

• The 2020 program got a lot of money that went to those with higher income - mostly because of time pressure to deal with the suddenness of the pandemic and the country did not have the infrastructure to do better targeting at the time
• The 2021 program was better at targeting the money at those with lower income

No, it wasn't. I got more in 21 than 20.

And Larry is right. In any event, the second round should have been much better targeted, and the third round should ever have happened at all. My financial advisors got a half million dollars in 'relief', when in reality COVID did not affect their business at all, which is based on a percentage of assets under management.

[LuFins Dad]

1. @Mik @Copper This was the “Paycheck Protection” funds. I sure as heck hope you guys didn’t get any considering you’re retired (though you could have applied for consulting work, I suppose)

2. OF COURSE IT WENT TO THE TOP 20% OF INCOME EARNERS! Those are your frigging employers! The guy working as a laborer at a construction site can’t apply for these loans, the owner of the construction company does. And then has to demonstrate that he then used the money to pay the construction worker.

Dumbasses!

[LuFins Dad]

Now if the employers didn’t use the majority of the funds for payroll, then the funds must be paid back plus interest.