Corona crisis may lead to some changes in the economy

Question: One of the candidates in the Democratic primaries had what I thought to be a most interesting proposal. It was for the government to give everyone $1,000 a month. It would seem to me that this coupled with a major overhaul of the welfare system could improve so many people’s lives in a very significant way. I am hoping that Saint Germain or another master would comment on this.


Answer from the Ascended Master Saint Germain through Kim Michaels. This answer was given during the 2020 Webinar – Choosing America’s Future.

Well, this is certainly one among many interesting ideas that have been brought out as a result of the Corona crisis. And it is the hope that this crisis will lead to some changes in the economy not just in the United States, but in other countries as well.

Now we have talked about this RAND Corporation study of the income inequality and the rising income inequality, where they concentrate the wealth in the hands of the top 1% who therefore do not spend the money. This means that when you take money from the 90% of Americans, concentrate it in the hands of the top 1%, you are effectively removing that money from the economy, because the top 1% cannot spend it. They use it to invest and accumulate to feel more and more secure. Whereas if you allow that money to be in the hands of the 90% of Americans, they would spend it. It would increase economic activity, create a sustainable growth in the economy where GNP would be raised every year and everyone except the top would prosper. Well, even the top would prosper – but as we have said, they do not see it that way.

Naturally, the ultimate outcome of the Corona crisis would be that people recognize this income inequality and did something about it − repeal those laws that have given these unfair advantages to the power elite. But as an interim stage, it is clear that giving money to the people will also have a positive effect on the economy.

If you will go back to the financial crisis of 2008, you saw the American government take the step of creating lots of money out of nothing and giving it to the big banks with the hope that they would lend it to people and thereby restart the economy. As it turned out, which anyone with economic sense could have foreseen, most of the money was not lend out by the banks, it was to secure, it was used to consolidate their positions, so that the banks became stronger. In other words, the money that the government gave to the power elite was in for the most part kept by the power elite. Around 8% of it found its way to the real economy. It is clear that if in 2008, you had taken the same amount of money and just given it to the people, this would have had a far greater positive effect on the economy.

Likewise, if you gave everybody $1,000 a month, they would spend this money and it would have a positive effect on jumpstarting the economy. Other countries have come to the same ideas, have considered or are considering doing this. And it is clear that from a completely realistic viewpoint, giving money to the people will have a greater positive impact on the economy than giving it to the power elite. It will always be that way. One can only wonder why the leaders of America have not seen this before. And you can of course point to perception filters and cognitive dissonance, the collective entities that blind people and lawmakers to this, you can point to the fact that some of the politicians have grown up in power elite families and so on.

But nevertheless, it is high time that these ideas are brought out and debated and tested out. It is clear that a potential positive outcome of this Corona crisis can be major changes in the economy. Because anyone who is willing to take a realistic look, can see that the Corona crisis has made obvious the inequalities and the problems in the economy of not just the United States, but many other countries around the world. And one of the major problems is, of course, the unequal distribution of wealth, the concentration of wealth in the hands of fewer and fewer people taking that wealth from the population.

 

Copyright © 2020 Kim Michaels