4 ms·
Perhaps the reason is not obvious because of the scale, so lets exaggerate the numbers to make it more obvious: If everyone in the US was given $1 million per
by gonational 7y ago
Perhaps the reason is not obvious because of the scale, so lets exaggerate the numbers to make it more obvious:
If everyone in the US was given $1 million per month, do you think that rent in Austin would go up in absolute terms?
If yes, by what mechanism can you imagine this effect is caused?
If no, I don’t know what to say.
- AnthonyMouse 7y agoThe reason it goes up if you give everyone $1M/month is that $1M/month of money for everyone in the country doesn't actually exist. That's ~$330T/month. You couldn't collect that amount in taxes because nobody has it to collect it from; or if you did then nobody would actually be getting $1M/month since they'd just all be paying ~$1M/month in taxes to fund it. The implied way to do it is, of course, by printing the money. Which would indeed cause inflation in not just rents but everything. But how does that apply to the real case when the money doesn't come from printing it?