Lanhdanan
107821
2301
53
Economists are stunned!
May 20, 2020 12:10 PM
Lanhdanan
107821
2301
53
TightenTheLugnutz
Economists are out of touch with reality. And silly.
boomer0001
We were doing okay before all this hit. Saved most. Donated some.
electraqshunher
Economists at large universities are just as bad as the wealthy. They are very out of touch with reality.
airforceteacher
Someone’s buying appliances - freezers are sold out everywhere I’ve looked.
Spiderbubble
I spent it (and $400 dollars more) on three months of Cobra because healthcare in this country is fucking shite.
RyanAndTheQuestForWorldDomination
I literally don’t think any actual successful economists would be surprised by this whatsoever.
rigs1983
It's like the vast majority of US citizens were barely getting by
Bobfromboblandofbob
Economics degree here; wasn't stunned nor was I surprised when major corporations were robbing the small business funds. Though it doesnt 1
Bobfromboblandofbob
take a degree in economics to see when history is going to repeat itself. 2
FLLingerieLuvr
I call bullshit on this! Why would the Univ. Of Southern Denmark give a damn about the US stimulus package?
ScoundrelPDX
One person of the team is located there. Because that's how academic research teams work.
FLLingerieLuvr
Well then, they, as a team, spanning international economies, are apparently more removed from reality than our politicians.
tumantorak
Citizens acquire necessities by using this “one weird trick” (do this today).
sudoer
What kills me is that in Maryland taxes build new lanes on the freeway only to toll them allowing only those with disposal income their use.
cptnwinky
You fucking nailed it
AvocadoHouse
Citizens are killing the Car, Electronics, and Furniture industry (by trying to survive).
BlindGardener
in other news today, economists at Columbia University, Northwestern University, the University of Chicago and the University of S. Denmark
BlindGardener
Have been proven so out of touch with the rest of the planet, that they simply slipped the bonds of gravity and drifted away into outerspace
linearcore
Physicists at the same universities are very excited to study the new phenomenon and plan to loudly remind the economists they suck at math.
OddBrock
The spelled “People with no money prioritize essentials” wrong. And they should get at least a 25% pay cut for spouting this garbage.
Blackfinity
tkwood64360
Misquoted for effect. https://www8.gsb.columbia.edu/newsroom/newsn/9022/new-research-cares-act-checks-are-being-spent-quickly-on-essentials
SoupCanMan
Oh shit, it's like 2009. And rich idiots are upset us normies are using money on shit like rent and food again.
PutItInNeutral
Ours went right into the savings account untouched. Both my wife and I have been able to work during this whole ordeal so far, but if one...
PutItInNeutral
...of us gets sick, and we have to self quarantine, we will need that money for bills.
donorkort
Here is the report: https://insight.kellogg.northwestern.edu/article/stimulus-checks-spending-data-2020-coronavirus-covid
donorkort
TL;DR: this post is fake news. They said that in the past, people used stimulus on e.g cars, not that they predicted they would this time.
mikedwe
I think there was a misunderstanding between what the check was stimulating... Clearly they thought it was for the economy
Hereagain
Is there a source for this? I'd like to read the rest.
NoodleJesus
https://www.forbes.com/sites/suzytaherian/2020/05/15/new-stimulus-needed-1200-check-had-little-impact-on-economy/#54ee14c43ce1
NoodleJesus
This was the closest I could find.
finnsto
can't find the article right now, but basically, "Millenials are killing the credit card industry, paying off debt and putting in savings"
finnsto
found it https://www.cnn.com/2020/05/12/investing/jobs-coronavirus-consumer-spending-debt/index.html
PleaseRespectMyAsshole
Well that's just dumb. Of course we are saving money, I don't know if I'll be fucking employed tomorrow! Guarantee me that I'll have 1/
PleaseRespectMyAsshole
a place to live, ac/heat, electricity, water, and food and I'll go on a god damn spending spree! 2/
finnsto
I don't think economists really understand economics unless they have a background in history.
TheRealAlpharius
ArcSenpai
You pay tax to pay off the interest on the bonds that the government has with the Fed. You're paying inescapable off government debt.
MakeItBackAlright
This isn't a socialist stance imo, it's just a dog whistle invoked to fool idiots into rejecting ideas out of hand instead of judging merit.
arkady74
Thank you.gif
Fyba
Agreed if feasible. However the current state of the government's combined corruption and incompetence makes success very unlikely.
RealityIsOftenDisappointing
spending taxes on 5 or 6 of those puts money in the rich's pockets anyhow.
SuperSaiyanSasquatch
Yes but not the rich who have the most money and who are currently doing the most lobbying
TehDude333
Rodrodington1
"No!" - rich people that need your money for a second yacht.
HadNoIdeasForUserName
Ámen
TurdBurglar3000
Dwalker2
Free healthcare. In America......
TheWonderfulWizardOfOs
What happened to this Twitter account?
techley
No taxation without representation
Faasel524
You want to be Scandinavian. Don't blame you.
ObserverOfTheDumb
Trying to get away from all the black people? That's pretty racist.
RedRobbinsYummmm
I’ve google how to move to Finland a million times during this pandemic. USA is a turd sandwich I’m tired of eating.
Snooj
Mine went straight to a credit card. Poof, gone. Relieved a little stress. I'm sincerely hoping for round 2 but it looks like it's stuck.
PleaseRespectMyAsshole
Straight to savings for my wife and I. We thought about cards but decided on rent instead. Scary times we are living in.
Snooj
It's a tough call. It makes more sense to pay off interest bearing debt unless in doing so you just need to rack up that debt again.
PleaseRespectMyAsshole
Oh yeah, I agree, it is a tough call. I let the wife make the decision on this one.
Snooj
That is an excellent method of not being wrong about stuff.
PleaseRespectMyAsshole
Lol. "Happy wife, happy life"
EmailFail
"Why didn't these folk just use their trust funds"
gumblemuntz
"Get a small million dollar loan from your parents..." -Mitt Rmoney
thatscool22
Ask dad for a small loan of a million dollars. And get daddy to bail you out when you fuck that up. Then take all the business when he dies.
EmailFail
Exactly
Leighue
Just shows how out of touch they are with the general public. Their "logic" isn't based on real human behaviour and this just shows it
Govote
We're broke. With student loans, housing, and medical bills we've been broke for years. Check your voter registration at vote.org
CyclopticColleague
TheGreatPenguini
BookLvr6
I didn't need to check but I did apply for a mail in ballot so thank you!
MelodiousDissonance
And dont forget to check for absentee ballots and voting at a more local level! Every place is doing their own thing so stay informed!
loosemoosejuice
Trump is so out of touch with the people its insane
abidikgubidik
But he loves America more than anyone /s
TheBlueMuppet
He'll be in touch with you if you have a pussy he can grab. Just gonna pick ya up like a bowling ball and toss ya down the lane.
loosemoosejuice
goodtemplar
I've seen this suggestion so many times I'm actually inclined to check my voter registration at vote.org.
DelightfulReapings
Lol i just checked. It was super easy!
goodtemplar
I'm not American though, so I don't think It'll actually help.
linearcore
As a random American:
vhdangel
The problem is, the Dems killed your chance of real socialism reform with Bernie, putting up Biden. They're just as bad as the GOP. :/
BenjyX55
IMO, it's less of "douche vs turd" and more "douche vs douche that might slightly improve healthcare."
Govote
Problem is people comment like this to drive voter depression. That *is* corruption. Don't buy the bullshit. Vote. Check at vote.org
SavageHonesty
Biden isn't great by any means, but no. He is not as bad as what the GOP has twisted itself into in recent years and even decades.
shadowsdustwind
Did u watch the dnc debates? Ton of better canadates then Biden. The dnc is blatantly corrupt, they don't even try to hide it.
drunkpanther
Imagine unemployment being at an all time high, and thinking people are gonna buy a car! To go where motherfucker??!!
86yourhopes
Also on what planet is a bank giving you a loan with unemployment listed as your income?
drunkpanther
Username checks out for service industry
unrealisticxpectations
+1 actually lol'ed
dohcohv
I bought a car, mostly because car prices tanked and interest rates are low.
drunkpanther
With your stimulus check?
dohcohv
Sort of, I have savings and was waiting to buy a newer van, the extra cash plus low prices and low rates made it very attractive. I got 3900
dohcohv
Because I'm married with three kids. I replaced my wife's 15 year old caravan with a 2 year old Honda Odyssey.
SociallyAwkwardCanadianMoose
That first year of depreciation is insane. A 2 year old car still has a lot of life in it
drunkpanther
Oh hell yeah, brother. Right on!
SubiBryant
$1,200 is "Automobile spending* money?
KnightWhoSaidNi
In an episode of UK Top Gear they each buy a car for $1000 ....
Somanyquestions
Automobile repairs? Finally replace that loud muffler or worn out tires.
WayOfTheScience
$1200 is barely a month rent where I am
JCDenton10
We sold our old 2001 Camry for not a *whole* lot more than 1200. Man, that car was a workhorse.
RobErtE87
It's almost as if the payments were given to help people who struggle with decreased income, instead of giving people extra spending money.
Bobfromboblandofbob
No it was a cover to send kickbacks to corporate donors.
jursamaj
As far as they're concerned, it was about the economy, not the peasants. That's why they called it a stimulus.
IrateMeatAndMeatAccessories
I'm probably a unique case, but I've yet to get my DD on it or check, and I can say that ramen, white bread, and crackers is not a meal.
berrmal64
It's the classic "just buy a house and stop being homeless" mentality. They can't imagine having so little, literally, can't get the concept
cornpopwasabaddude
It could do both. 2k a month would allow people struggling keep their heads above water and those who were not to put money into the economy
coralto
People keeping their head above water stimulates the economy the most. They will immediately spend it.
cornpopwasabaddude
No it doesn't. People buying houses and cars stimulates the economy.
coralto
Did you just claim that spending money doesn’t stimulate the economy? Fascinating.
linearcore
2000 a month would be a raise for me. I'd definitely put the extra into my savings.
cornpopwasabaddude
That's tough my man. $15 minimum wage is $2400 a month.
professionalConfirmologist
"why aren't millennials buying avocado toast?!” -Boomer Media (/s)
Hatrax
Next day: "You entitled Millenials would have so much money if you would stop buying coffee every day!"
Jarjarthejedi
BlindGardener
I know I cut my caloric consumption to about 3/4ths after I moved out of my parent's. I still weigh the same though.
BlindGardener
I just feel hungry all the time.
HiddenSanity
(It's called budgeting and home cooking...)
NotSoSmartAlek
And neighborhood food pantries for the poor of us.
HiddenSanity
Yup! Although when I was lower income there was this neat set of stores exclusive to lower income people that got a lot of 'ugly' rejects-->
HiddenSanity
overstocks, and other perfectly good food that might end up in a dumpster otherwise. What they had in stock was unreliable, but it was great
FallingStar7669
Hey man, rice really goes a long way. Source: millennial that eats rice.
linearcore
Rice, beans, and a little cheese for a complete meal. It may get boring after too long, but it will keep you fed and it's cheap.
Varimothras
I've been trying to perfect Benihana's garlic fried rice for a year now. Still not quite there. It's the garlic butter mixture I'm sure.
DarthVaderDidNothingWrong
They expected people to buy a car with $1200? What?
Pixel8yt
I mean it encouraged me to buy a car I needed since my truck was dying. That check is 3 months of payments
Thephedora
LOL not with so much going to businesses that dont need it and want. 5% growth in the next quarter.
wdr1977
What could a banana cost? $10?
xcrit
For under $1000 in the last 10 years I have bought a Ford Fairmont, a Mitsubishi Mighty Max, a RHD Subaru Legacy, and an El Camino....
xcrit
I get bored with cars and give them away or trade them for stuff. I traded the Subaru for a SonicWall Firewall.
LariCheltsy
At this point, I'd sell a couple for 1200
DigitalMau
My dad works at a dealership, can confirm theyve been having record sales lately. people are fucking stupid
xGuenhwyvarRx
I work for a promotional products company, most of our customers are car dealerships. We stayed in business bc of dealers buying signs 1/2
xGuenhwyvarRx
That encouraged people to “spend your stimulus with us!” It was hard to be a part of.
Cruxador
A shit car, obviously.
ImPrettyFlyForAWhiteGuy
1200 can get you a solid turbo or supercharger set up though.
XXXSpork
They expected the public to have the confidence to go out and get into debt by using the $1200 as a down payment or collateral.
Isorikk
I actually almost used it as a down payment for a vehicle but the dealer wouldn't give me a fair price for my trade-in so I walked away
nonamejanie
Yeaaaah maybe a 1970s Datsun with no muffler and 4 slick donut tires with only a drivers seat and rusted out floor boards.
bandanafurscale
Tbf id say about 2% of my automobile spending has been on actually buying a new car
BallDoctor
Well, a family of 5 might get $4K. If both parents are still working remotely, that might be a respectable chunk of a car.
Banikins
I mean that's what I did. Best 1200 dollars I've spent.
Skizzlesnap
After working in auto sales, it’s more than most people put down on a car these days. They’d rather drag payments out for 8 years.
IMakeYourMotherJokes
Down payments
whatimdoinghere
its about car parts probably. like bigger turbo, new rims etc
Sowhatseverybodydoinglater
I think by "automobile spending" they meant more like repairs, loan payments, loan applications, things like that.
Christx30
I mean... I did use mine on the down payment for a used car. So... ya know?
moeojelly
Well if you pull yourself up by the bootstraps they certainly are!
hawkesnightmare
I can see where they're coming from. If they weren't behind on bills, $1200 is a fine down payment on a 10-15k car.
Dalael
"They" have no idea what's life for normal people.
EdwardEH
Some economists are out of touch with real people.
WheresYourSister
1200$ is a hooptie off craigslist, but im sure they expexted people to go to dealerships or something
linearcore
I don't think I've ever seen that word in print before. "Hooptie" I've always just heard it. It looks...wrong, somehow.
hawkesnightmare
I've always spelled in in my head as hoopty.
ziggystaryu
Likely maintenance. Source: work at an auto service co, modest sales increases came right after stimulus.
Lanhdanan
It's one banana, Michael. What could it cost, $10?
jebascho
https://imgur.com/l8ajLEQ
degenerator
That's my rent, mother.
SpreadyUnsettling
What is your source for this? Is this on reference to the US stimulus checks, or somewhere else? I ask because it's fairly well documented
SpreadyUnsettling
how poor people spend stimulus money, and there really shouldn't be any doubt. I can't think of a single economist at UoS-DK that would even
SpreadyUnsettling
entertain the idea of the American poor and middle class buying cars and appliances with stimulus money. It all seems incredibly far fetched
SpreadyUnsettling
, and your omission of source and context makes me believe this isn't entirely accurate.
RabidButterfly
It's a scene from Arrested Development where a rich lady estimates that the price of a banana is $10. It's a meme about clueless rich people
DasZebra
For that amount of money i could buy a used car in a decent shape. Not american tho.
Aaronb1138
You should see the shit hood rats do with tax returns that size. "Look muh bros, I can pay a down payment on a new ride"
Sm9yCg
No no no no. Rich people got up to 4 million in stimulus checks. No one gives a fuck about the poor dead bodies.
IronicJeremyIrons
I s this the 50s where I can get a fully loaded Caddy for that much?
Ninjainslippers
I've bought a car for $1200. That was in 1936 though, so a little different.
ProbeGT
Haven't you seen that shiney new Ford Mainline ? Only $1,548 ! Oh wait, that was in 1954…
DarthVaderDidNothingWrong
$400 to build a time machine
Craizie
Maybe car parts?
FlamingDeathGoat
"auto spending" includes stuff like accessories and maintenance. Not just new cars
beccerz777
I think they meant it like spending money on your car (fixing it, new paint job, lifting a truck, etc)
degenerator
Economists really have their heads shoved right up their models.
jiynxed
Down payment?
TheBlueMuppet
1200 isnt a down payment on a new car, and it wont cover the extended warrenty fee on an older car. Its a set of good tires and some food.
Isorikk
$1200 can certainly be a down payment. I bought my car for $1000 down. Just don't buy expensive cars and it's fine!
TheBlueMuppet
First car i bought i put 1200 down and the warrenty was 1600 by itself, so i was still -400 on the car, lol.
TheBlueMuppet
That said, the car lasted 14 years, which was why i bought it, i didnt want a throwaway.
Firemonsterlols
To me if you need a stimulus check for a down payment, you should not be making the purchase. How are you affording the monthly payments?
Isorikk
$1200 down on a vehicle you could already afford will get you lower APR and reduce monthly though
Firemonsterlols
If you are in a place financially where you cannot set aside 100$ to 200$ a month to save 1200 for a down payment.
Firemonsterlols
Granted it could be a "dont need it" but it makes things easier sure.
IamTheBestAtDonutEating
Theyre so out of touch with the plights of some ppl that these things seem realistic
iguessihaveto
I mean how long have they been fed the lie that poor people are poor because they blow immediately money on luxury goods instead of using
iguessihaveto
It to get ahead in life? Now they actually have trackable data saying the same thing actually poor people have always asserted- that's
iguessihaveto
Bullshit, it is actually MORE expensive to be poor, and most of us just want to get our bills paid.
OrangeFlavours
Out of touch? They're economists at universities, it's literally their job, they aren't out of touch. Automobile expenses aren't buying cars
BlindGardener
It's their job to be out of touch, yes.
OrangeFlavours
It's ANY purchase related to automobiles.
[deleted]
[deleted]
seenweirdthings
health insurance $20 hahahahaahahah
scuuubasteve
I wish. I'm furloughed and to keep my insurance through cobra is 2300 a month! Fucking crazy.
AShartInTheWind
Where the hell would this budget even work?
orbitn
Maybe when the guys who made this budget were in college, sometime in the 1970s, this was achievable. My mother herself seems to criticize>
orbitn
me for getting a place that's 'so expensive'. It's 1300 for 3 of us, in the most distant suburbs of nashville. It's like she doesn't >
orbitn
realize inflation is a thing and it's still the 1980s
donorkort
They're less out of touch than you who take random posts at face value. It's fake news.
IamTheBestAtDonutEating
I dont understand. Your article literally says ppl are spending money on groceries, takeout, bills, and rent
donorkort
Yes, exactly. It isn't a prediction of how stimulus was spent, but an analysis of it. The "out of touch economists" don't actually appear.
IamTheBestAtDonutEating
Did i say economists? I meant politicians. Who expected 1200$ to last more than a month, you morosoph
donorkort
https://insight.kellogg.northwestern.edu/article/stimulus-checks-spending-data-2020-coronavirus-covid
iguessihaveto
How is it fake news? This article you posted literally says the same thing as this post.
donorkort
No, it literally is not. The paper isn't about predicting the consumer behavior, but about analyzing it. The quote isn't an actual quote.
donorkort
And here is the part that they somehow translated into the fabrication in the post:
shank1104
And after buying the car you can go to the corner drugstore for a 10 cent cup of coffee and a pack of doctor-recommended Lucky Strikes.
linearcore
LSMFT, my friend. Why is this ad slogan ????? ?? ?? ??????? ?????
AnniCannibal
It's toasted!
OneSilentWalrus
LSMFT...Loose straps means floppy titties?
linearcore
Lucky Strike Means Fine Tobacco. I notice it every time it shows up in some period movie or TV show. Now you can too. You *always* will, now
OneSilentWalrus
Heh, they're actually what a buddy of mine smokes, that's just one he likes to use.
FussyZeus
The politicians are detached from reality. In other news rain is wet.
Feralkyn
These are economists and I don't think automobile spending means buying cars; probably more car parts and repairs
DarthVaderDidNothingWrong
Economists in this case
KateTsun
Same thing, but at least politicians are more often correct about things.
FussyZeus
Oh snap
mywutangnameiswackodestroyer
single/no kids/no debt/90k salary put 15k into retirement and still have my job. Gov gave me 1.2k, but I’m saving it until things recover.
TheInternetNeedsMoreCats
Im in the same boat and mine was 400.
ericus220
Bullshit. If you got paid 90k, you didn't get 1.2k. something here doesn't add up
mywutangnameiswackodestroyer
It’s based on adjusted gross income. So after healthcare/retirement/etc. my adjusted gross is right at 75k which means I get the full 1.2k
scuuubasteve
Not supposed to but some dead people got a check so who knows.
puffyjacket69
What game is this? The one where we make up numbers to brag to strangers? Seems fun...
Basispoint
It's the game where we say "I'm doing 'ok' by today's standards and I ain't ok".
mywutangnameiswackodestroyer
Trying to say that economists expect people like me to spend the stim check, but confidence is too low
JPRiddles
Doesnt seem like you needed that check. The people who were using it to pay rent needed it. Was there any qualifiers or did everyone get it?
mywutangnameiswackodestroyer
I agree, especially bc I’m still working. It’s based on adjusted income. They just auto-deposited it into my account.
TuckerCarlsonWarnedYouTheredBeGirlsLikeMe
Everyone got it. I think they expected unemployment to cover bills and people to spend the $1200 on a large purchase.
recury
If you made more than a certain amount it was a sliding scale down to $0. Threshold was somewhere around 90k for it to start dropping
YourCouch
After the financial crisis in 2008, they found most people used that stimulus check on auto parts
linearcore
The comparison will be interesting data as a marker on how food/housing secure the average person was in 2008 vs 2020. Just 12 years.
Fl0zilla
People got stimulus checks in 2008?
tinybartender
$300 from W.
diphenhydraminehcl50mg
Wow
tinybartender
Same thing happened then, people didn't spend it to stimulate the economy. I.E. Mine went to Obama's campaign for president.
BlargKing
That's what I've been spending my Canadian version on. That and new tools. I live at home so I don't have many bills.
ZeroLogain
What stimulus? The extra GST credit?
BlargKing
CERB
ZeroLogain
I don't think that should be called a stimulus as it's only applicable to a portion of the pop that lost work.
billyjed
Doesn't everybody live at home? Isn't home where you live?
BlargKing
Idk usually when people say they "live at home" it means they still live with their parents. Maybe that's not a universal saying.
YourCouch
https://www.kellogg.northwestern.edu/news_articles/2010/spent.aspx
OddlyPacific
Most 2000s cars were not built to live long
dohcohv
My '01 f-250 would disagree, it served 210k miles as a park service truck and it still runs great.
CastleBonerShrinker
My gpas giant late 70s GMC Sierra? Still trucking along. My 05 chevy classic? Dead AF
SephiRothIRA
2005 Civic at 277k miles still going. I had a 1990 Cherokee and 97 Saturn prior to Honda. Those American cars died before 100k mikes. Trash.
[deleted]
[deleted]
SephiRothIRA
“Just got past the break in period” heh.
Schmong
Wow for real? My 2003 Mercedes had 550k kilometres (~350k miles) before I sold it off. I thought all cars got to 200k range at least
TuckerCarlsonWarnedYouTheredBeGirlsLikeMe
I know many a 80s and 90s Cherokees living past 250k. Not surprised about the Saturn though. My 2000 Suburban is almost at 200k.
TheThirdDay
That's a Handa for ya. Great engines.