Communists and socialists are wrong about the governments’ stimulus programs. They should redirect criticism elsewhere.

Hello, I am a revolutionary socialist. I am also an economics major. One of those “learn the rationale to own the neolibs/change the field from the inside/refine Marxist analysis with modern economic models” types.Being an economics major and also a socialist during the coronavirus is an interesting spot. I’ve had mixed feelings about a lot of things I’ve heard people say. A certain other socialist page has been shitposting twitter screenshots nonstop. A few contain good criticism. Most of them are cringe. And some of them are actively spreading misinformation about how monetary policy works.One criticism I’ve heard repeatedly is that printing money constitutes a handout to banks. This is wrong. When the federal reserve “prints” money, they do so by purchasing bonds, treasury notes, and other debt securities. The bank gives the fed a bond for $100. The fed gives the bank $100 in cash. The banks have no more money than they did before, it’s just a more easily accessible form of money. The benefit of doing this is that it allows banks to repay their debts more easily, so (hopefully) prevents a financial system collapse. FINANCIAL SYSTEM COLLAPSES ARE NOT GOOD, except maybe from an accelerationist standpoint.I’ve also heard criticisms about “bailouts” for businesses during this time period. First of all, we’re actually talking about loans here. The companies will have to repay the government with interest. That’s not a handout unless you’re willing to commit to the belief that student loans are a legitimate welfare program.Even if it were a handout, due to these unusual circumstances, this may be the only thing that works. I’ve seen many socialists advocate simply giving workers the money. That would work if we expected consumers to spend this money, but people don’t spend during a pandemic. Since in these circumstances, we can’t rely on consumer spending alone as a way of covering expenses, it makes sense for the government to help cover payroll directly. That way, people in essential industries can keep their jobs wether or not customers show up.Last of all, this isn’t a normal recession, since it involves a disruption in production rather than a disruption in consumer spending. Because of this, coronavirus has a unique ability to destroy the supply chain, which will spill over from nonessential industries into essential ones. The economy could shrink as much as 50%, by some estimates. Unemployment could reach 30%. DEPRESSIONS ARE NOT GOOD, except maybe from an accelerationist standpoint.So, by and large, I support the stimulus/stabilizing measures taken by the government and the federal reserve, and I think most socialists who are aware of how these policies operate should agree. They’re the best options we have to combat a depression, and the alternative would have unacceptable consequences for the working class.I’d rather see criticism about this: why is it that politicians take this economic crisis so seriously, but hardly did anything about the 2009 mortgage crisis? It’s almost as if when an economic shock affects everyone— not just the poor— politicians take it more seriously!!! Gee whiz. And why is it that the rentier class gets to keep collecting, despite mandates that forbid most forms of working income?Thanks for reading. Workers of the world, unite! via /r/communism https://ift.tt/2WVcr5x