Federal Reserve: 75% of PPP Went to the Wealthy or Other Unintended People

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The Paycheck Protection Program was intended to save jobs after our so-called leaders shut down the government. Instead, they sent most of the money to the wrong people.

The report from William R. Emmons, lead economist in the Supervision Division at the Federal Reserve Bank of St. Louis, and Drew Dahl, an economist at the bank is stunning. It certainly shows the incompetence of Big Government.

Portland, OR, USA – Oct 19, 2020: Street scene outside the Central City Concern’s Employment Access Center in downtown Portland amid the pandemic.

They found that “only about one-quarter of PPP funds supported jobs that otherwise would have disappeared.”

Also, “PPP’s benefits flowed disproportionately to wealthier households rather than to the rank-and-file workers that its funds were intended to reach.”

According to the Waukesha Freeman, the report states:

Taxpayers paid $4 for every $1 in wages and benefits received by workers in jobs saved by the federal government’s pandemic Paycheck Protection Program (PPP).

The Fed study also found PPP didn’t support jobs at risk of disappearing, and money flowed disproportionately to wealthier households.

The report said it was “very timely” and “saved 3 million jobs”, but “it was poorly targeted, as almost three-quarters of its benefits went to unintended recipients, including business owners, creditors, and suppliers, rather than to workers.”

It was also “regressive compared with other major COVID-19 relief programs, as it benefited high-income households much more.”


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