4 ms·
Thats one thing that hasnt been studied enough, I suspect. Huge amounts of capital from 401ks alone may have more effect on the market valuations than actual va
by aswanson 9y ago
Thats one thing that hasnt been studied enough, I suspect. Huge amounts of capital from 401ks alone may have more effect on the market valuations than actual value creation. There is just so much money chasing a return, increasing constantly.
- pm90 9y agoThis might be an unpopular opinion on this forum, but one of the best ways to reduce the money supply seems to be more taxation right? This is why I don't get why Republicans seem so hell bent on tax cuts... we already have so much money going around. Better take it out, fund healthcare and education and reasonable welfare systems.
- RobertoG 9y agoIf you fund healthcare and education you are putting the money out again. -When you tax and spend, you are redistributing, but the final quantity is the same. -When you tax but don't spend, you are reducing demand in the economy by making worse the people with money. -When you don't tax and don't spend in public services (austerity), you are reducing demand in the economy by making worse the people without money. That should explain the Republican position. Anyway, there are different "kinds" of money, and only one "kind" is reduced or created that way.
- pm90 9y agoGreat comment. I guess I should have clarified my statement since I meant redistribution, when talking about taxing and spending on healthcare/education. I guess the argument on the merits of redistribution is the fundamental difference b/w democrats and republicans.
- eru 9y agoI don't think that's the fundamental difference. It's more down to different tribal identities, and any correlation with differences in policies is contingent.
- danans 9y agoWouldn't funding those programs put money right back into the economy, thus preserving the money supply?
- nerfhammer 9y agothat's not how the money supply works. US Treasury != US Federal Reserve If you give the Federal Reserve a dollar it ceases to exist. If you give the Treasury a dollar it will go out and spend it on something, the dollar will continue to exist. Taxes go to the Treasury.
- eru 9y agoOnly if you don't spend the money taken in via taxation.