Chamath Palihapitiya always impresses me when he speaks. Mr. Palihapitiya is my favorite speaker on CNBC.
Mr. Palihapitiya told CNBC this morning, “Unlike other recessions where you don’t know where the bottom was, this recession was pretty easy where the bottom was the first few months because literally everything was shutdown so we went to zero. Now we’re in the slow grind back to normalcy but the reality is that the economy is not in a great place.
The first phase of stimulus was wasted. A lot of the money was sent to companies. Those companies didn’t allocate properly. They still ended up laying off hundreds-of-thousands of employees, just literally the day after the stimulus said that they could so the money wasn’t functionally useful.
The right way to think about this is to increase the amount of stimulus sent directly to Americans. This economy is always consumer led. It’s consumption that drives growth. It drives jobs and capital allocation. The more money in individuals hands, the better they can be to support businesses, buy different products and that’s how we grow ourselves out. The longer we wait to realize that and the more money we waste and give to zombie companies, we’re just going to push the can down the road and its all unnecessary.”
Mr. Palihapitiya agrees with me that Americans should have been receiving monthly stimulus checks each month for the last five or six months now. The dysfunctional federal government in the U.S. couldn’t even provide basic support for citizens during a deadly pandemic that continues to infect around 40K Americans a day and that has killed more Americans than World War I and Vietnam. Both republicans and democrats and those who have been in Washington for many years are to blame. We are a failed country and until we realize that and work to correct our mistakes, things will only get worse.
“The right way to think about this is to increase the amount of stimulus we send to direct Americans,” Social Capital CEO Chamath Palihapitiya told “Squawk Box” on Tuesday. “The more money we waste and give to zombie companies, we’re just going to push the can down the road and it’s all unnecessary.”