The math of House Speaker Nancy Pelosi’s latest bailout legislation, misleadingly called the Heroes Act, is mind-boggling. It leads my boggled mind to dust off a 60-year-old idea of Milton Friedman’s: The negative income tax.
There has already been roughly $3 trillion in coronavirus response spending approved. The Heroes Act contains another $3 trillion, for a total of $6 trillion.
Only a fraction of this is to pay for direct COVID-19 related health-care expenses. The bulk of it is to prop up the economy in one way or another.
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