Fed Report Finds 75% of $800 Billion Paycheck Protection Program Didn’t Reach Employees – IOTW Report

Fed Report Finds 75% of $800 Billion Paycheck Protection Program Didn’t Reach Employees

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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), according to a new study by the Federal Reserve Bank of St. Louis.

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

“The PPP was a very large and very timely fiscal-policy intervention, saving about 3 million jobs at its peak in the second quarter of 2020 and distributing $800 billion well within two years of the onset of the COVID-19 crisis,” authors William Emmons and Drew Dahl concluded in their study, “Was the Paycheck Protection Program Effective?”

“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. Due to differences in the typical incomes of those varied constituencies, it also ended up being quite regressive compared with other major COVID-19 relief programs, as it benefited high-income households much more.” read more

21 Comments on Fed Report Finds 75% of $800 Billion Paycheck Protection Program Didn’t Reach Employees

  1. A government program that didn’t work as intended? No, I can’t believe it. I vote that instead the national anthem be changed to the Looney toons theme song.

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  2. “A government program that didn’t work as intended?”

    It worked EXACTLY as intended.

    Corruption on top of corruption steeped in corruption and flavored with corruption.

    mortem tyrannis
    izlamo delenda est …

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  3. Investigations into how they let 25% get away is already underway in Washington DC.

    There isn’t a single individual who voted for this who did so with anything other than malicious intent.

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  4. There is still $48 Trillion still unpaid debts from TARP, 2008.
    The feds are going to bump the interest rate another 3/4% on top of the first rate bump, that will make $182 Trillion to the national debt annually. 48% goes to foreign investors.

    Sort the far right column to net outstanding and see how many companies didn’t pay back any.
    https://projects.propublica.org/bailout/list

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  5. “Pissing away money is what the govt does best.”
    Graft, corruption, theft, grifting – whatever you want to call it – it wasn’t “pissed” away – it was stolen. Our “legislators” knew precisely what they were doing and into which pockets it was going. Any decent bookkeeper could follow this money. If the DoJ wanted to prosecute, they would. But my guess is that they, the “agents” of the FBI, and the IRS maggots got cuts, too.
    $600 Billion just “disappears?” BULLSHIT. Can’t happen.
    The phrase “with malice aforethought” comes to mind.
    THERE’S a true conspiracy that the watchers of the dark should be investigating – you know – the media – the FBI – the IRS – the GAO – the protectors of America?
    We’re a fucking banana republic, now.

    mortem tyrannis
    izlamo delenda est …

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  6. Nancy & her vineyard got theirs.
    (I still can’t look at Garth Brooks after he KISSED her ASS at the Gershwin Awards!)

    Paul has plenty of time to sample the product since its been heavily subsidized by the American Tax Payers.

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  7. If that’s what they are admitting to, it is a half to a third of we are lucky that got to the people they were saying it would.

    What we know is that at a bare minimum 75% of it got to who they intended it to reach. Friends (campaign contributors, politicians don’t have any true friends), family and “bisiness” associates (lobbyists). Not to mention those passing them insider stock trading info.

    That much is a stone cold natural fact.

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