Banking On A Windfall ?
(Banking On A Windfall ?)
The term is "profit." Each commercial or government concern spends money. In a private corporation, at the end of the year, or quarter as might be measured, if the company made more than it discharged, that is the money made. The question is what to do with it ? Usually, the profit gets re-applied back into the fiduciary structure of the company. Another option is to pay a dividend to share-holders. There can be advantages to both courses.
Dewey's has the best Seafood in Destin, Florida. Dewey's is a small business. It is family owned. A small business in other words. But it is very popular. The restaurant makes money. As Dewey's is on the water, improvements are continually being made like expanding parking, seating arrangements and so on. On the other hand, larger companies do need share-holders. They make money but that would be in measure to those who bought the original stock.
The largess from DOGE has the same methods, either its banked like at Dewey's or it gets disseminated to share-holders. As a translation, the money can either be banked and applied to the federal deficit, as Speaker Johnson is favoring, or a 20% rebate to be direct payments to people that could be as high as $5,000.
Five thousand dollars buys a lot of beer. Dewey's serves a lot of beer. The sum could also be very helpful in immediate expenses. To be sure, with economic conditions in the current state, with food and gas prices are still too high and with millions of American still living paycheck to paycheck, a cool five large at the moment would go a long way to improve conditions.
At some point, however, the money will run its course. While the immediate situation might have improved for affected households, the overall crisis at the federal level is also acute. Interest alone on the $36 trillion national debt rivals that spent on the Pentagon. DOGE savings are to date short of the massed reductions that in the end will be required. At the current rate of reductions, cutting millions instead of billions, at this rate, the Millenium will have turned.
A compromise is being offered. A 20% rebate could be sent in direct payments and the rest committed to debt reduction.
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