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Why is it that massive handouts in the form of quantitative easing over the past decade are fine but giving money to poor people will lead us to an instant Zimb
by stallmanite 7y ago
Why is it that massive handouts in the form of quantitative easing over the past decade are fine but giving money to poor people will lead us to an instant Zimbabwe/Weimar situation?
- gonational 7y agoBeing against personal welfare and being against corporate/bank welfare are not mutually exclusive. Nobody that I know, is OK with giving out corporate welfare or quantitative easing of any kind. Certainly, I’m not.
- thawaway1837 7y agoWell, the point is not whether you’re ok with it or not. The point is why did the massive amount of quantitative easing not lead to Zimbabwe, since there is very little difference between that and giving handouts to poorer people. Basically, QE completely undermines your claims about “handouts = Zimbabwe”. If you really want to know what caused Zimbabwean hyperinflation, it was the fact that Mugabe took land from people who knew how to use it productively to grow produce and rear livestock, and gave it to people who didn’t know how to do that. IOW hyperinflation happens when the money supply exceeds the productive capacity of the economy in question. If the productivity of the economy grows then the money supply can be increased without causing hyper inflation. If there is slack in the labour market, potentially caused by the money supply being too low, the money supply can be increased without hyper inflation simply because because the increased output matches the increased money supply.