When COVID shutdowns went into effect in 2020 and 2021, a lot of people were displaced and ended up losing quite a bit. Some jobs and businesses fell by the wayside, whereas others barely survived.
Amid the lockdowns and other COVID-related measures, the federal government decided that handing out money in the form of stimulus checks and small business loans would be a good idea.
During this time, there were warnings that handouts from the government would later adversely impact the economy. Yet, even when the funds were disbursed, they didn’t always make it to the correct and proper sources.
This put the federal government in a tough situation where they had to recover pandemic money they had incorrectly given out.
Recovering Billions in Incorrect COVID Loans
This past Monday, congressional lawmakers confirmed the government is working hard to fix mistakes that were made concerning loans given to small businesses amid COVID.
A huge part of fixing this entails the recovery of $10 billion that America incorrectly handed out to assist companies they thought were in need. Unfortunately, though, the federal government has a lot more work to do before this is neatly wrapped up.
Today, @COVIDOversight heard from federal investigators taking action against #COVID19 pandemic relief fraud.@TheJusticeDept, @SBAOIG, @COVID_Oversight and @SecretService are hard at work preventing taxpayer funds from going to waste. pic.twitter.com/izCyhUiKiB
— Select Subcommittee on the Coronavirus Crisis (@COVIDOversight) June 14, 2022
More than $1 trillion in combined enhanced unemployment benefits, economic injury disaster loans, and the paycheck protection program money is reported as going not to Americans in need, but to scammers eager to pick up a check.
All of these scammers weren’t even in the United States. Some of them have been discovered as foreign criminal cartels.
All things considered, there’s no telling how long it will take for the federal government to get back the funds that went to the wrong sources. There is some money that the feds may never be able to recover, even with the best hands on the job.
The Biggest Loser in All This
As Democrats are running the federal government right now, they’re already largely trying to tie this situation to the Trump administration. The same left-wing officials also claim that Biden is just doing a fabulous job of making sure fraudulent payments are targeted accordingly.
— Select Subcommittee on the Coronavirus Crisis (@COVIDOversight) June 15, 2022
Yet, the biggest loser in all of this is the American taxpayer. Taxpayers are being raked across the coals with 8.6% inflation, rising interest rates — and, most likely, a recession.
That is the price of “free money” from the government, even when it didn’t get to the right place.